Retail Management

A costume jewelry store purchases earrings from a vendor at $6 per pair and retails the earrings for $15. What is their markup percentage? 60% 87% 40% 9% 21%

60%

With reference to segmenting customers, the condition of the 80-20 rule supports that to gain 20 customers, a retailer needs to market to at least 80 customers. 80% of the customers drive 20% of the sales and profits. 80% of the sales or profits come from 20% of the customers. 80% of the time, 20% of the customer data mined is incorrect. 80% of the customer base can be retained with a 20% off coupon.

80% of the sales or profits come from 20% of the customers.

A(n) ________ identifies the performance of individual SKUs in the assortment plan. sell-through analysis GMROI ABC analysis vendor analysis multi-attribute analysis

ABC analysis

Which of the following terms describes a document that tells the distribution center what is specifically shipped and when it will be delivered? Advanced Shipping Notice (ASN) Radio Frequency Identification (RFID) Bill of Lading (BOL) Universal Product Code (UPC) Shipping Document (SD)

Advanced Shipping Notice (ASN)

________ is the depth of merchandise and the number of SKUs within a subcategory. Variety Assortment Mixture Selection Categorization

Assortment

Retailers are the second largest industry as a group of advertisers. What is the largest industry of advertisers? Real estate Healthcare Electronics Music Automobile

Automobile

For a retailer, which of the following steps would help in negotiating a deal with vendors effectively? Using a minimal number of retailers Being aware of deadlines Insisting on subjective information Using personal connections to the vendor Dominating the conversation

Being aware of deadlines

Which of the following is true of sales promotions? High cost per exposure Content is beyond the control of the retailer Timing of communication is beyond the control of the retailer Builds customer loyalty Transmission of detailed amount of information

Builds customer loyalty

________ are specific goals related to the retail communication mix's effect on the customer's decision-making process. Communication objectives Brand awareness Brand associations Brand equity Sales promotions

Communication objectives

Which of the following is most likely to be placed in the strike zone? Compelling merchandise Nationally branded merchandise Destination merchandise High GMROI merchandise Impulse products

Compelling merchandise

Which of the following is true of personal selling? Low cost per exposure Content control is in the hands of the salesperson Timing of communication is beyond the control of the retailer Uses the Internet to reach people Conveys minimal amount of information

Content control is in the hands of the salesperson

________ is when a vendor and a retailer share the costs and benefits of a pricing promotion. Promotional expense Cooperative advertising An advertising stipend A lift-out A corporate sponsorship

Cooperative advertising

________ includes goods made and sold without the permission of the owner of a trademark or copyright. Counterfeit merchandise Staple merchandise Fashion merchandise Seasonal merchandise Buffer merchandise

Counterfeit merchandise

A mother and daughter both shop at the same department store but each have their own store credit card. They both receive a direct mail piece in the mail; however, the direct mail pieces are quite different from one another. The direct mail piece addressed to the mom has home décor and cooking products featured with a 20% off coupon; the direct mail piece addressed to the daughter has cosmetics and accessories as featured products without any coupon. How is the retailer able to target specific products and incentives to certain customers? Customer relationship management programs Employee experience management programs Employee feedback management programs Partner relationship management programs Sales force management programs

Customer relationship management programs

You are a vendor representative with a new line of fashion watches showing it to a new buyer. The costume jewelry buyer says she would like to buy the line but has too many lines of fashion watches in her assortment already that are not selling. She continues to complain that her worst-selling brand of watches will not help her out with any markdown allowances or take any of the merchandise back. She states that she is no longer buying any more merchandise from this line and will have to wait until it sells before she can bring in a new line of watches. What might you suggest or negotiate? Cooperative advertising Doing a charge back Doing a buyback Commercial briber Selling the product on the black market

Doing a buyback

The college football game played in Atlanta, Georgia's "dome" was formerly titled the Peach Bowl but is now titled the Chick-fil-A Bowl. What best describes this type of communication method? Cooperative advertising Event sponsorship Product placement High-assay Pop-up

Event sponsorship

The NFL Minnesota Vikings play at home in Minneapolis in a fixed-roof stadium which is referred to as U.S. Bank Stadium. Concerts are held there as well. The naming of the stadium is considered to be top of mind awareness. Event sponsorship. Brand image. Aided recall. Brand licensing.

Event sponsorship.

________ would reduce a retailer's price and promotion wars with competitors. Disintermediated pricing Penetration pricing High/low pricing Price skimming Everyday low-pricing

Everyday low-pricing

________ refers to the concept in which the latest generation of price promotional offers takes into account the consumers' location accessed from their phone location or locational coding via certain sites and offers them localized promotions for retailers who are in close proximity. Self-selected variable pricing Multiple-unit pricing Geofencing Dynamic pricing Individualized variable pricing

Geofencing

Which form of layout is best suited for grocery stores? Boutique Free-form Loop Racetrack Grid

Grid

Which of the following is an example of a price-elastic product or service? Medicine Holiday packaging Books Movie ticket Branded luxury goods

Holiday packaging

Which of the following is used to improve the effectiveness of frequent-shopper programs? Flattening the rewards hierarchy Treating one-off shoppers like VIPs Incorporating charitable activities Setting static rewards Rewarding only specific transactions

Incorporating charitable activities

Which of the following is a way to achieve customer alchemy? Dissatisfying platinum and gold customers Increasing the sales made to existing customers through add-on selling Analyzing the data collected from platinum and gold customers Converting customers who are loyal to other retailers to shop only at your store Listening to customers and altering loyalty programs to better satisfy their needs

Increasing the sales made to existing customers through add-on selling

Which of the following is true of individualized variable pricing? It is easy to assess the price a customer is willing to pay. It allows stores to change the displayed prices at random. It creates good will as the customers are always happy with the prices. It can be used as a strategic differentiator. It is irrespective of changes in demand and supply.

It can be used as a strategic differentiator.

Which of the following is true of forecasting for fashion merchandise categories? Multiple Choice It is independent of the sales figures from the previous year. The forecast made from social media mining is invariably incorrect. It is likely to take inputs from fashion trend services. Vendors are not likely to be knowledgeable about market trends. It is constant across the retail channels over which a product is being offered.

It is likely to take inputs from fashion trend services.

Which of the following statements is true of the pull supply chain? Merchandise is allocated to stores on the basis of forecasted demand. Specified quantities of merchandise are shipped to stores at predetermined time intervals. There is a greater likelihood of being overstocked or out of stock. It requires only a cheap and simple information system to support it. It is more responsive to changes in customer demand.

It is more responsive to changes in customer demand.

What is true of a retailer's backup stock? It is the inventory used to guard against going out of stock when demand exceeds forecasts. It refers to the case when the inventory level goes up and down in response to the replenishment inventory. It is the combination of the BOM stock and average stock. It is the basic stock amount combined with the planned sales. It is the excess inventory used for promotion during special events.

It is the inventory used to guard against going out of stock when demand exceeds forecasts.

Which of the following is true of smaller format stores with respect to store size? It increases inventory costs. It improves customer comfort. It provides increased entertainment facilities. It stocks only essentials and perishables. It reduces payroll costs.

It reduces payroll costs.

Which of the following is true of a retailer's perpetual inventory system? It takes into account the outgoing sales and the incoming merchandise to calculate an accurate inventory at the end of each day. The costs of goods sold are calculated once the products are sold out. The oldest inventory items are recorded as sold first but do not necessarily mean that the exact newest physical object has been tracked and sold. The most recently received items are recorded as sold first which reduces the retailer's income taxes in times of inflation. It is a physical count of products on hand at regularly scheduled intervals.

It takes into account the outgoing sales and the incoming merchandise to calculate an accurate inventory at the end of each day.

An inventory management system with a shorter lead time that has merchandise delivered for sale close to the time the customer wants to buy it is referred to as a FISHbowl inventory system. KwikWit inventory system. Springboard response system. FutureSoBright response system. JIT inventory system.

JIT inventory system

What is another term for a 50% initial markup? Double Washington Keystoning Jackson III MSRP Discount pricing

Keystoning

When Emily went to the Lands' End website on her laptop to browse for swimwear, the first thing she saw was a personalized greeting. Which of the following best describes how LandsEnd.com knew it was Emily? She ordered before and told them her name. Her name is on all of her shipments as well as her address. She used a password. Another retailer sold her private information to Lands' End. Landsend.com placed cookies on her hard drive to identify her when she visits.

Landsend.com placed cookies on her hard drive to identify her when she visits.

A store gave all of its products prices that end with either $.49, $.79, or $.99. What type of pricing is the store following? Odd pricing Unit pricing Horizontal pricing Mixed pricing Promotional pricing

Odd pricing

Which of the following statements is true of retail stores being utilized as fulfillment centers? The merchandise is shipped from the store to the retailer's DC and then shipped to the customer. It results in overall higher inventory investments. It enables the retailer to carry less merchandise in individual stores. Orders placed online can get filled by the customer's nearest store, which can reduce time and shipping costs. Filling orders by store employees is more efficient and cost-effective than through a separate warehouse.

Orders placed online can get filled by the customer's nearest store, which can reduce time and shipping costs.

Which of the following is generally the most expensive form of communication? Sales promotion Public relations Store atmosphere Personal selling Word of mouth

Personal selling

________ signs are placed near the merchandise they refer to so that customers know its price and other detailed information. Call-to-action Category Promotional Point-of-sale Digital

Point-of-sale

________ offer the consumer a product that is comparable to a manufacturer's brand quality, sometimes with modest price savings. National brands Generic brands Copycat brands Premium store brands Exclusive brands

Premium store brands

A store has coffee makers priced at $9.99, $19.99, and $29.99. Which of the following pricing practices is being utilized? Price lining Price bundling Prestige pricing Horizontal price fixing Leader pricing

Price lining

________ occurs when retailers offer a limited number of pre-determined price points and/or price categories within another classification that are merchandised together. Vertical merchandising Tonnage merchandising Price lining Idea-oriented presentation Color presentation

Price lining

________ devices are attached to containers, shipping cartons, behind clothing labels, and on items to transmit data about the object in which they are embedded. RFID CPFR EDI UPC VMI

RFID

________ is performed by retailers when they offer promotional and clearance markdowns, coupons, price bundling, and multi-unit pricing. Self-selected variable pricing Multiple-unit pricing Leader pricing Dynamic pricing Individualized variable pricing

Self-selected variable pricing

_____ is a process whereby retailers can tap into a variety of online chat formats to collect consumer comments and then analyze these data to identify customers' attitudes and product preferences. Text mining Data mining Sentiment analysis Search engine marketing M-commerce

Sentiment analysis

________ are charges imposed by a retailer to stock a new item. Slotting fees Tariffs Markdown money Markup money Sales tax

Slotting fees

Which of the following statements is true of the push supply chain? Requests for merchandise are generated at the store level on the basis of sales data captured by POS terminals. Specified quantities of merchandise are shipped to stores at predetermined time intervals. There is a lesser likelihood of being overstocked or out of stock. It requires a costly and sophisticated information system to support it. It is more responsive to changes in customer demand.

Specified quantities of merchandise are shipped to stores at predetermined time intervals.

________ is 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. Consumer direct fulfillment Supply chain management Reverse logistics Backhaul Vendor-managed inventory

Supply chain management

Which of the following is a feature of production facilities located in developing economies? High labor cost Shorter lead times Low transportation costs Tariffs Increase in product quality

Tariffs

________ prohibits vendors from offering different retailers different prices and purchase order terms for the same merchandise and quantity. Tying contract The Robinson-Patman Act The resale price policy The chain store mandate Copycat infringement law

The Robinson-Patman Act

Which of the following must be considered when allocating merchandise to stores? The decision about the quantity of merchandise to purchase is more important. The allocation decision is independent of previous sales figures. The allocation decision is independent of the geodemographics of a store's trading area. The allocation decision depends on the current inventory in a store. The allocation decision is independent of the paycheck cycle.

The allocation decision depends on the current inventory in a store.

Which of the following is not used to estimate customer CLV? Past shopping behaviors to predict future behaviors The gross margin made from the customer's purchases The costs associated with serving the customer The cost of promotions to attract the customer The customer's household income

The customer's household income

Which of the following is a feature of a target market that is price-sensitive? The market can be made less sensitive by showrooming. The sales will decrease significantly when the product price rises. The price elasticity would be more positive than -1. The price sensitivity would not vary with time. The price elasticity is more negative than -1.

The price elasticity is more negative than -1.

A Kohl's store just celebrated its grand opening, and there was merchandise that was already promotionally priced in the store, even though it just opened. What would be the most logical answer as to why the retailer had markdown merchandise at the grand opening? The price reduction on the merchandise was taken to promote sales. The merchandise must have been incorrectly priced in the first place. The promotionally priced merchandise was shipped from a different market where it was unsuccessful. The promotionally priced merchandise was old and out of season. The promotionally priced merchandise had been returned from other customers.

The price reduction on the merchandise was taken to promote sales.

Which of the following has the least importance of all of these factors when making decisions about purchasing and allocating merchandise to stores? The store or department's annual sales volume The decision about the type of merchandise to allocate to each individual store The timing of when to allocate the merchandise to the stores The geodemographics of a store's trading area The quantity of the merchandise in terms of too much or too little

The quantity of the merchandise in terms of too much or too little

Which of the following results in a lower number of markdowns? The retailer is pricing the merchandise high. The retailer has a large stock of the merchandise. The retailer does not have the option to send the merchandise back to the vendor. The retailer has projected an image of abundance among customers. The retailer initially offered a good value for the product.

The retailer initially offered a good value for the product.

Which of the following does the retail store design team consider to decipher how exciting the store should be? The target market's shopping goals The typical customer's discretionary income The other competing retailers' store atmospherics The trade area and site location of the store The amount they have budgeted to spend on store design

The target market's shopping goals

A manufacturer's representative for a prestigious apparel line finds out that a small retailer in his territory has his newly released product line in their store, but he did not sell it to them nor are they "authorized" to have the products. What most likely would explain how the store obtained the merchandise? The unauthorized retailer may have gotten the products as diverted merchandise. The unauthorized retailer may have gotten the products through the black market. The products are most likely obtained from the gray market. The unauthorized retailer may have had a typing contract with another vendor. The unauthorized retailer may have an exclusive dealing agreement with another sales representative.

The unauthorized retailer may have gotten the products as diverted merchandise.

According to the customer pyramid hierarchy, which of the following is true of the iron segment customers of a retailer? Even though they buy a significant amount of merchandise from the retailer, they are equally likely to patronize some of the retailer's competitors. Their spending levels, loyalty, and profitability are not substantial enough for special treatment. They make a negative contribution to the firm's income. They often buy merchandise on sale or abuse return privileges. They often place more value on customer service than price.

Their spending levels, loyalty, and profitability are not substantial enough for special treatment.

According to the customer pyramid hierarchy, which of the following is true of the platinum segment customers of a retailer? Even though they buy a significant amount of merchandise from the retailer, they are equally likely to patronize some of the retailer's competitors. Their spending levels, loyalty, and profitability are not substantial enough for special treatment. They make a negative contribution to the firm's income. They often buy merchandise on sale or abuse return privileges. They often place more value on customer service than price.

They often place more value on customer service than price.

Which of the following does not accurately describe customer relationship management? Through CRM, retailers recognize that all customers are not equally profitable. Through CRM, retailers may treat certain customers differently. Through CRM, retailers concentrate on providing more value to their best customers using targeted promotions. Through CRM, retailers try to increase the share of wallet with all customers. Through CRM, retailers provide more incentives to their best customers.

Through CRM, retailers try to increase the share of wallet with all customers.

Which of the following steps is essential to ensure that merchandise is floor-ready? Cross-docking Break-packing Ticketing Retailing Warehousing

Ticketing

In a supermarket or drug store in the U.S., where is the best placement for private-label merchandise? To the right of nationally branded merchandise In the middle of nationally branded merchandise To the left of nationally branded merchandise In the back of the store In the left hand side of the store

To the right of nationally branded merchandise

Which of the following is a feature of mass advertising? High cost per exposure Content is beyond the control of the retailer Timing of communication is beyond the control of the retailer Personalized messages Transmission of limited amount of information

Transmission of limited amount of information

________ is the breadth of a retailer's merchandise and the number of different merchandising categories within a store or department. Variety Assortment Mixture Selection Categorization

Variety

_____ is a communication among people about an entity such as a retailer or a product or service. Word of mouth Coupon Rebate A premium M-commerce

Word of mouth

Kohl's Department store and the Vera Wang Company worked together on developing a brand called Simply Vera to be carried exclusively at Kohl's. They shared market research of what their target customer needs, likes, and dislikes were to develop the right assortment at the right price. They agree to respond to the market nuances together, share trends, and sales analysis. This describes an example of a strategic relationship. a cooperative agreement. corporate bribery. tying contract. corporate sponsorship.

a strategic relationship.

The menswear buyers from Macy's are attending the "MAGIC Marketplace" to search for new trends, meet existing vendors, and talk to sales representatives as they walk through the exhibit area. The buyers are at a retail exchange. a trade show. a wholesale market. market week. a market square.

a trade show.

In the ________ method, retailers first forecast their sales and expenses, excluding communication expenses, during the budgeting period. affordable budgeting percentage-of-sales competitive parity rule-of-thumb objective-and-task

affordable budgeting

After developing a plan for managing merchandise inventory in a category, ________ is the next step in the merchandise management process. replenishing the inventory levels planning for the following season analyzing the performance and making adjustments allocating the merchandise purchased negotiating with the GMM and DMM for open-to-buy money

allocating the merchandise purchased

In the CRM process, after constructing a data warehouse, the next step is to analyze the customer data and identify target markets. develop CRM programs. comparative shop the competition. implement CRM programs to make a positive impact on sales. adjust prices and assortments according to the customer feedback.

analyze the customer data and identify target markets.

Stores providing hedonic benefits stock essential products. are designed to provide customer entertainment encourage customers to shop as quickly as possible. provide drive-through facilities. aim to provide faster checkouts.

are designed to provide customer entertainment

Frequent-shopper programs are useful for building long-term customer loyalty. are perceived to be of high value by the consumers. offer discounts that are especially attractive to high CLV shoppers. are extremely simple and cheap to implement. are difficult to revise or correct.

are difficult to revise or correct.

The cookies used over the Internet are used to make automated payments online. refer to special promotional offers for items sold through the Internet channel. are used to monitor the retail outlets visited by a customer during a day. are used to identify the online activities of a customer. are used by retailers to keep track of the inventory.

are used to identify the online activities of a customer

Reverse auctions are popular with vendors. follow a many buyers, single seller system. are used for reselling of merchandise. are used to procure store-brand merchandise. compel the retailer to buy the product from the lowest bidder.

are used to procure store-brand merchandise.

As customers enter the store Sunny Side Up, a swimwear and beach apparel store, they first become aware of the pleasant seaside smell along with the slight breeze from the large ceiling fans. The store is well lit, utilizing lots of natural light and accent lights on featured merchandise. The music playing is fun-loving beach themed artists and songs. This environment has (an) attractive Multiple Choice frontal presentation. ecological design. behavior-oriented design. atmospherics. lifestyle appeal.

atmospherics.

Rather than returning empty after delivering merchandise to a retail store or DC, good supply chain practices will arrange to have a truck return with other product; this is referred to as a boomerang load. bull whip effect. dual directional delivery. gogo route. backhaul.

backhaul.

Providing ________ in stores is done to comply with the ADA. bathrooms with handrails or grab bars 32-inch flat screen televisions checkout with 60-second latency period drive-through facilities narrower aisles to save space

bathrooms with handrails or grab bars

American shoppers usually do not like it when a store is so cramped that the customers may touch one another while shopping. When the ________ occurs, customers may decide to leave without making a purchase. dump and dash effect crowded house effect butt-brush effect bottle-neck effect abandon effect

butt-brush effect

To minimize the negative impact of unprofitable customers, retailers can charge customers for the services they are abusing like a stocking fee for returned goods. forbid the unprofitable customers from entering their store. charge potential unprofitable customers a higher price than what the product is ticketed at. implement 1-to-1 retailing. implement a high-pressure sales team to persuade unprofitable customers to buy more.

charge customers for the services they are abusing like a stocking fee for returned goods.

Shoppers who go from one store to another purchasing only the items that are on sale or specially priced are referred to as cherry pickers. first-degree price discriminators. second-degree price discriminators. red liners. bargain basement warriors.

cherry pickers.

A ________ is a group of items targeting the same customer type, such as men's designer sweaters. Multiple Choice SKU department merchandise group classification subclass

classification

A data warehouse is a physical location where perishable goods are stored. is unidirectional in structure and organized by merchandise information only. is unidirectional in structure and organized by retailer information only. is unidirectional in structure and organized by purchase date information only. contains detailed information about customers.

contains detailed information about customers.

CVS, a drug store, retails its own set of products that closely imitates a popular manufacturer's brand in appearance and packaging. This is an example of a ________ brand. generic copycat family national sub

copycat

Merchandise sales rate and degree of perishability or fashionability typically determine whether or not cartons are cross-docked. freight forwarded. quality checked. dispatched. outsourced.

cross-docked

Anita is a regular customer at FreshGreens, a grocery store in her neighborhood. Recently, she started patronizing another store because it offered free home delivery. This scenario is an example of the failure of FreshGreens' ________ program. customer loyalty brand loyalty advertising data warehousing employee loyalty

customer loyalty

The ________ contains transactions, customer contacts, customer preferences, descriptive information, such as demographic and psychographic data, and responses to marketing activities. promotion database security policy RFM analysis market basket analysis data warehouse

data warehouse

The lowest sales per square foot area within the store is usually in the decompression zone strike zone. right-hand side of the store. left-hand side of the store. back of the store.

decompression zone

A communication program aims to improve store visibility. is independent of any time constraints. is intangible with no quantitative goal. defines the target audience for a communication mix. does not comment on the degree of change expected.

defines the target audience for a communication mix.

The ________ manages the inbound merchandise by booking appointments for deliveries and notifying the planners of the scheduled delivery dates. dispatcher vendor buyer freight forwarder coordinator

dispatcher

In the awareness phase in a strategic partnership, the buyer and the vendor begin to explore the potential benefits and costs of a partnership. begin to work on joint promotional programs. make significant investments in the relationship. experience an increase in sales. do not perform any transactions.

do not perform any transactions.

A grid layout is suitable for stores providing hedonic benefits. makes for a visually exciting design. requires a high budget for fixtures. does not encourage unplanned purchases. exposes customers to all the merchandise in the store.

does not encourage unplanned purchases.

Michelle made an online purchase of patio furniture from a store. When the shipment of her purchase arrived at her home, she noticed that the product was shipped to her directly from the manufacturer. The retailer and vendor are utilizing a system of drop-shipping. cross-docking. outsourcing. third party logistics. vendor managed inventory.

drop-shipping.

Selecting vendors as category captains Multiple Choice adds a layer of complexity to the merchandise management tasks. enables application of knowledge obtained from a vendor's experience with other retailers. splits profits of the retailer and results in financial loss. prevents price fixing. promotes smaller brands by giving them increased shelf space.

enables application of knowledge obtained from a vendor's experience with other retailers.

Customer lifetime value (CLV) is the expected contribution from the customer to the retailer's profits over his or her entire relationship with the retailer. total amount of purchases the customer makes at the retailer. amount of shopping visits the customer makes at the retailer. value a customer places on retailers by importance and worth. assessment of how many valued customers shop with a retailer.

expected contribution from the customer to the retailer's profits over his or her entire relationship with the retailer.

Wholesale market centers facilitate the bulk sale of a vendor's offerings. are temporarily set-up for a few weeks. are visited by international manufacturers who want to learn about the market and pick up on trend information. are visited by sponsored celebrities who are available to talk with buyers as they walk through the exhibit area. have halls that provide an opportunity for an in-depth discussion.

facilitate the bulk sale of a vendor's offerings.

A ________ has two crossbars that sit perpendicularly on a pedestal and allows the customer to view the entire garment. gondola feature fixture rounder straight rack bulk fixture

feature fixture

A ________ is an island type of self-service counter with tiers of shelves, bins, or pegs. gondola feature fixture rounder straight rack bulk fixture

gondola

Reverse logistics system sends goods from a few DCs to a vast number of stores or customers. is engaged in with an objective of providing consistent quality. has a preset distribution plan. seeks cost transparency in its standardized cost structures. has a direct effect on environmental sustainability.

has a direct effect on environmental sustainability.

Areas near the escalators and cash wraps are considered to be high traffic areas, good for impulse items. high theft areas where only low price and lesser desirable products should be located. low capture areas where only the newest, most exciting merchandise will be noticed by customers. the best location for demand merchandise. where unique and expensive merchandise that requires thought and concentration for purchasing decisions should be located.

high traffic areas, good for impulse items.

When a retailer offers large assortments, there is a lesser chance that a customer will find the product that he or she requires. lower complexity associated with the purchase decision. lower latency associated with the checkout process. higher level of stimulation associated with the shopping experience. greater possibility of stockouts.

higher level of stimulation associated with the shopping experience.

Overall, effective supply chain management results in ________ due to fewer stockouts and tailored assortments. higher return on assets lower turnover higher inventory increased markdowns lower gross margin

higher return on assets

The illegal practice of ________ is when retailers agree to charge the same price for products or services in an effort to reduce competition. horizontal price fixing vertical price fixing predatory pricing bait and switch deceptive pricing

horizontal price fixing

1-to-1 retailing is more likely to occur in larger retail stores. is performed by stores with advanced database and mining facilities. refers to the practice in which the merchandise is targeted toward a particular group. improves customer loyalty. places more emphasis on price than customer service.

improves customer loyalty.

Fragrances and cosmetics in department stores and magazines in supermarkets are examples of ________ merchandise. demand promotional impulse destination special

impulse

A cooperative program does not contribute to the communication budget. involves a partnership between two retailers. involves a partnership between two vendors. is a promotional program. is undertaken to build social awareness.

is a promotional program.

Customer relationship management (CRM) is a unidirectional process. aims to build a brand name. is about identifying and building relationships with patrons. is about developing a better rapport between managers and employees. is performed for the development of new products.

is about identifying and building relationships with patrons.

A customer that is loyal to a store is committed to purchasing from the retailer and will seldom shop at the competition. has a high frequency of purchasing merchandise from the retailer. has made a recent purchase from the retailer. spends 80% of their discretionary income at the retailer. will respond to a direct mail advertisement and shop at the store for a sale.

is committed to purchasing from the retailer and will seldom shop at the competition.

Marketing through a retailer's website has the lowest cost per exposure. conveys minimal information. is likely to be very personalized and interactive. shows a large delay between transmission and receipt of message. is more likely to have no provision for feedback.

is likely to be very personalized and interactive.

The data warehouse is distinct from the retailing data warehouse. contains only the contact information of customers. does not aggregate the information of customers in a household. keeps track of the spending patterns of the customers. is directly linked to the payment portal to debit money for purchases.

keeps track of the spending patterns of the customers.

The ________ is the actual sales of the merchandise less the cost of the merchandise. maintained markup initial markup average markup cumulative markup gross margin

maintained markup

Pens are stocked in the stationery as well as puzzle book section. This is most likely to be a finding from cost-benefit analysis. market basket analysis. cost-effectiveness analysis. RFM analysis. cost-utility analysis.

market basket analysis.

Overbooking appointments, taking reservations for dinner, and selling advance tickets are examples of ________ by service retailers. matching supply and demand multichannel retailing assortment plans improving gross margin continuous replenishment activities

matching supply and demand

The ________ is the number of each SKU in an assortment plan that the buyer wants to have available for purchase in a store. model stock plan category captain end-of-month inventory sales-to-stock ratio inventory turnover

model stock plan

Mead paper products, Cover Girl cosmetics, and Apple computers are all examples of ________ brands. private-label national general generic licensed

national

Retailers practicing the high/low pricing strategy offer frequent discounts on the initial prices for merchandise through sales promotions. experience a decrease in the advertising and operational expenses. are less likely to get rid of slow-selling merchandise. are less likely to experience stockouts. provide a surety for the customers that they will get the same prices all the time.

offer frequent discounts on the initial prices for merchandise through sales promotions.

Fashion merchandise refers to categories that are in continuous demand over an extended time period. is relatively easy to forecast demand for. requires merchandise planning systems that perform continuous replenishment. offers less flexibility in correcting forecasting errors. does not require end-of-season sales.

offers less flexibility in correcting forecasting errors.

The purpose of a(n) ________ system is to keep track of what the present inventory level is, when purchased merchandise is scheduled for delivery, and how much has been sold to customers. open-to-buy perpetual static operating sales forecasting

open-to-buy

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 outsourcing. freight forwading. backhauling. pull supply chain. push supply chain.

outsourcing.

In strategic relationships, the overall size of profit remains constant. retailer increases sales while the vendor maintains previous sales figures. retailer and vendor have different objectives. overall risk in investment decreases. relationship between the retailer and vendor is likely to be adversarial.

overall risk in investment decreases.

A large chain retailer opened a few months ago in the community where Carl lives. He was pleasantly surprised by how low their prices were compared to the local independently owned shops for the exact same items. Unfortunately, those independently owned retailers have all closed now because they were not able to compete on price with the larger new store. However, Carl has noticed that the newer large store has raised all of its prices up to where the independent stores had their products priced, and some products are priced even higher now. This is an example of Multiple Choice horizontal price fixing. vertical price fixing. predatory pricing. bait and switch. deceptive pricing.

predatory pricing.

The judges on the television show American Idol have Coca-Cola logoed cups on their table. This is an example of cooperative advertising. event sponsorship. product placement. high-assay. pop-up.

product placement.

A RFID tag requires manual updates for the item inventory system. requires line-of-sight to function correctly. provides real-time tracking of the tagged product. could not ever replace UPCs. increases the chances of a stockout.

provides real-time tracking of the tagged product.

REI's sustainable outdoor products come with eco-sensitive labels that help consumers easily track items made from a high percentage of recycled, rapidly renewable and/or organic fibers. About one-fourth of all REI locations are supplied by green energy, six of its buildings are LEED-certified, and REI's employees are encouraged to be green with biking and public transportation incentives. Plus, REI has plans to become both climate neutral and a zero-waste-to-landfill company by 2020 through emission cuts, green energy, and carbon offsets. These initiatives are best communicated through public relations. brand awareness. cooperative advertising. brand placement. brand associations.

public relations.

When a tornado ripped through a community, a local retailer's corporate office made a sizable monetary donation and shipped in supplies to help with the clean up and welfare of the affected people. The company's kindness and generosity was covered on the evening news and shared throughout social media. This is an example of public relations. brand loyalty. brand awareness. product placement. product premiums.

public relations.

The store design that provides a major aisle to facilitate customer traffic with access to the store's multiple entrances is the ________ layout. boutique free-form utilitarian racetrack grid

racetrack

The buyer of menswear was evaluating the prices of incoming orders. She decided to adjust the price of the incoming pea coats from $120 to $99.99 and use a price tag on the product that showed an original price of $120. The original price of $120 is referred to by retailers as the reference price. odd price. vertical price. break-even price. promotional price.

reference price.

Cross-docking is a compulsory step in the distribution center processing of goods. routes all the similar items to a single store truck. requires that the items are stored in the distribution center for a few months. is followed by break packing in the distribution center. results in confirmation of the number and type of merchandise in each carton.

results in confirmation of the number and type of merchandise in each carton.

In a(n) ________, the retail buyer provides a specification for what they would like to be produced for their private-label products and then manufacturers bid on the opportunity to be the supplier. reverse auction dutch auction subbrand proposal exclusive proposition commercial bribery scheme

reverse auction

The retailer can ________ to liquidate markdown merchandise. increase the pricing of the merchandise order a few more units of the merchandise invest in a better marketing plan move merchandise to another location sell merchandise over an online auction

sell merchandise over an online auction

A(n) ________ compares actual and planned sales to determine whether more merchandise is needed to satisfy demand or whether price reductions are required. sell-through analysis GMROI ABC analysis vendor analysis multi-attribute analysis

sell-through analysis

When Dave Carroll's $3,500 guitar was damaged by United Airlines, he made a music video about it that quickly became viral on the Internet mostly due to social media. publicity. retail relations. blogs. word of mouth.

social media.

Basing a forecasted sales figure on last year's data is best used for Multiple Choice fad merchandise. test merchandise. staple merchandise. seasonal merchandise. fashion merchandise.

staple merchandise.

Merchandise like athletic socks, soup, tape, and men's work boots is classified as expected merchandise. sample merchandise. staple merchandise. seasonal merchandise. fashion merchandise.

staple merchandise.

A ________ occurs when an SKU that a customer wants is not available. rain check backhaul reorder point stockout ship verification

stockout

Kellogg's is a family brand that is associated with the Frosted Flakes ________ brand. generic premium national store sub

sub

In the EDLP strategy, there is a(n) necessity for the customers to read the retailer's ads and wait for items they want to go on sale. increase in the advertising and operational expenses. greater likelihood of getting rid of slow-selling merchandise. greater likelihood of stockouts. surety for the customers that they will get the same prices all the time.

surety for the customers that they will get the same prices all the time.

When the backup stock is large, the product availability decreases. the retailer is likely to lose sales. inventory management work is minimized. the GMROI increases. the assortment and variety increases.

the assortment and variety increases.

"Stock it high and let it fly" is utilizing the tonnage display. bulk fixture display. capacity fixture display. gondola fixture display. vertical display.

tonnage display.

Store design provides ________ when it enables customers to locate and purchase products in an efficient and timely manner with minimum hassle. utilitarian benefits hedonic benefits exploration benefits economies of scale nonmonetary benefits

utilitarian benefits

A coffee brand partnered together with a grocery store chain to create a sales and inventory plan by store. The store's planner shared their past sales and inventory data and gave shelf space to the coffee brand, which then analyzed the information to determine how much and what product needed to be ordered each week. This is an example of vendor-managed inventory. electronic data interchange. freight forwarding. third-party logistics. direct fulfillment.

vendor-managed inventory.