marketing

market penetration

A retailer expanding their hours to be open an additional hour each evening is using the ________Blank growth strategy.

Many distributors use computer chips that are attached to shipping cartons and allow the contents to be scanned and automatically counted as they are received. These chips are called

RFID tags.

________Blank is described as diversification by retailers into wholesaling or manufacturing.

Vertical integration

Store managers focus mainly on what type of performance input?

operating expenses

Net profit margin is

operating profit margin minus taxes, interest, and other expenses.

Which statement is true about comparison shopping?

Enclosed malls offer benefits to consumers interested in comparison shopping.

Last year, a retailer had net sales that totaled $180,000. The cost of goods sold was $70,000. Operating expenses were rent $4000, payroll $20,000, utilities $2000, and advertising $1200. Calculate the operating profit percentage.

46%

With regard to segmenting customers, the condition of the 80-20 rule supports that

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

With reference to store sales, what is true of site accessibility?

Accessibility is greater for sites located near major highways.

In terms of the asset turnover management plan, what would happen if Nordstrom were to decrease the amount of inventory in its stores?

Asset turnover will increase.

Which strategy does not illustrate a sustainable competitive advantage?

BP gas stations offering a $10 gift card to customers after five fill-ups of at least eight gallons each time

________Blank occurs when a retail firm invests in and owns a retail operation in a foreign country.

Direct investment

________Blank are retail locations for an individual, isolated store unconnected to other stores.

Freestanding sites

Which statement is true about using the analog approach to estimating potential sales for a store site?

It is a more subjective approach.

Which statement is true of the pull supply chain?

It is more responsive to changes in customer demand than a push approach.

What is an example of a private-label brand?

Kirkland bath tissue

________Blank are open-air shopping centers composed mainly of upscale apparel shops, boutiques, and gift shops carrying selected fashions or unique merchandise of higher quality and price along with restaurants and entertainment and therefore are usually located in higher-income areas.

Lifestyle centers

With reference to store sales, which considerations should be followed while choosing a site?

Locations with complementary, as well as competing, adjacent retailers have the potential to build traffic.

globally sustainable competitive advantage

Many Chinese consumers exposed to American products and trends desire to emulate Americans. This has given the American brands an edge in the ________Blank characteristic for successful exploitation of international growth opportunities.

Which statement is true of the push supply chain?

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

________Blank locations involve an agreement in which a retailer rents a part of the retail space in a store operated by another independent retailer.

Store-within-a-store

________Blank 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.

Supply chain management

The best benchmark for the off-price retailer Ross, would be

TJ Maxx.

Trade area zones are best determined based upon

customer drive time.

Which statement is true of stores in unplanned locations?

The store opening and closing hours are determined by the store management.

According to the customer pyramid hierarchy, what is true of the iron segment customers of a retailer?

They don't spend enough to get special treatment.

Which statement is an advantage of freestanding sites?

They have fewer restrictions on signs, hours, or merchandise.

Which statement is true about Main Street locations?

They often have some restrictions due to town or reorganization planning.

The ________Blank is used to obtain information to analyze a retailer's profit margin management path.

income statement

Reid runs a profitable bar featuring off-track betting and plans to open another bar in a neighboring community. He contacted the landlord of a small shopping center with a vacant storefront. Nearby tenants include a florist, a toy store, and an orthodontist. To his surprise, his request for a lease was denied. What most likely prevented the landlord from leasing to Reid?

a prohibited-use clause

Cabela's has many store locations in the Houston area. One of its stores is an attractive glass front, free-standing two-level store with great visibility from a major highway. The only problem is that there are no highway exits near the store site and customers that see the store from the highway often cannot figure out how to get there. This store site has poor

accessibility.

Which term describes a document that tells the distribution center what is specifically being shipped?

advance shipping notice (ASN)

What is a positive indicator when evaluating store locations?

an area that has minimal legal regulations

At Mall of America, Macy's and Nordstrom are

anchor stores.

Shopping malls

are climate-controlled and are open all-year around.

Neighborhood centers

are designed for convenience shopping.

The cookies used over the Internet

are used to identify the online activities of a customer.

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

backhaul.

A community that wishes to keep an old town atmosphere has forbidden the use of any neon lighting. A ________Blank would enforce this restriction.

building code

Anytime Temps is a headhunting company that is thinking of expanding to a developing economy. Black Tie Events, an event management concern, is also thinking of

business-friendly laws and regulations

To reduce the level of conflict, most franchise agreements grant franchisees an exclusive territory. This strategy is designed to help franchisees avoid

cannibalization.

The _____Blank arrangement is responsible for providing security, parking lot lighting, outdoor signage, advertising, special events to attract consumers, and so on in planned locations.

common area maintenance

What is the first step while using the analog approach to estimate potential sales?

conducting a competitive analysis

A data warehouse

contains purchase information collected at point of sale.

A bakery and a party goods store sign a contract for leasing space in a shopping center such that if either one leaves, the other store would not be penalized if it decides to vacate as well. This is an example of a(n)

cotenancy clause.

The rate and degree of perishability or fashionability of merchandise typically determine whether or not cartons are ________Blank in the distribution center.

cross-docked

Which factor is not characteristic of retailers who have successfully expanded into nondomestic markets?

cross-selling strategies

At Lululemon, a sales associate is suggesting a yoga mat to a customer at the checkout area to go with the yoga pants she is already purchasing. This selling approach is called

cross-selling.

Retailers that have similar target customers and compete against each other have greater drawing power which mutually benefits all the retailers when they are located near each other. This principle is referred to as

cumulative attraction.

Accounts receivable and merchandise inventory are examples of retailer's ________Blank assets that can be converted into cash within one year.

current

Each time a transaction is made at Sunil's tailoring shop, he asks his customers for their ZIP code. Sunil then manually plots the location of each customer on a map. Sunil is attempting to identify the trade area for his store by wh

customer spotting

Which stage of the site selection process is most likely to involve generation of a trade map using the data warehouse of current customers using ESRI's GIS software?

defining present trade area

Frequent-shopper programs are

difficult to revise or correct.

The _____Blank coordinates deliveries to the distribution center.

dispatcher

Monique 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.

When Gina negotiated her lease with the neighborhood shopping center to open her paint-your-own ceramics studio, she requested that in her lease it should state that no other crafting store could also be in the shopping center. This is

exclusive-use clause.

What is the most common type of lease used at community and neighborhood shopping centers?

fixed-rate lease

Some inner-city areas lack access to affordable fresh produce, meat, and dairy products. Because of this, these areas are considered

food deserts.

Of the different approaches of entering a global market, which has the lowest risk but also the lowest potential return on investment?

franchising

Many inner-city areas are going through a process of _____Blank, which is the renewal and rebuilding of offices, housing, and retailers in deteriorating areas coupled with an influx of more affluent people that displaces the former, lower-income residents.

gentrification

A small grocery sells hand sanitizer for $2.00 a bottle, but it pays $.75 for each bottle from the supplier. The difference of $1.25 is the

gross margin.

Overall, effective supply chain management results in ________Blank due to fewer stockouts and tailored assortments.

higher return on assets

Which site selection stage would involve determining the predominant ethnicity groups in an area?

identifying trade area characteristics

Which activity is used to improve the effectiveness of frequent-shopper programs?

incorporating charitable activities

The amount and selection of merchandise inventory, the number of stores, size of the stores, the employees, advertising, markdowns, store hours, and promotions are all examples of retailers' ________Blank measures.

input

A related diversification growth opportunity involves

investing in a new opportunity that shares something in common with the retailer's present target market and retail format.

In a specialty shopping situation, the consumer

is brand and/or retailer loyal.

Carmella is a loyal customer of Mario's Supermarket and Drugstore. This means that she

is committed to purchasing from Mario's and will seldom shop at the competition.

In a convenience shopping situation, the consumer

is relatively insensitive to price.

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 ________Blank system.

just-in-time inventory system.

A store is slated to open in an urban area of Chicago's "Loop," formerly home to a department store for over 100 years. The store will carry a wide range of grocery items stocked only in this location as there are no grocers in a three-mile radius. The store planners evaluated many different factors, but _____Blank was the most desirable factor for this site.

lack of competition

Pens are stocked in the stationary and the gift sections of a store. Which application of data mining is most likely to influence this decision?

market basket analysis

Premium Apparel Group recently purchased four well-known clothing stores from another global retailer: Ann Taylor, a clothing store catering to young working women; Loft, a store featuring trendy clothing for a broad-based female demographic; Lane Bryant, which offers clothing for 25- to 55-year-old women who like to be fashionable; and Lou & Grey, which targets young women under age 30 with upscale casual wear. What growth strategy is Premium Apparel Group using?

market expansion

Phonecomm Inc., a telecom provider, has rented a small space in the airport with a vending machine that supplies tourists with temporary calling cards. This is an example of a(n)

merchandise kiosk.

A ________Blank is a core urban area containing a population of more than 50,000 inhabitants, together with adjacent communities that have a high degree of economic and social integration with the core community.

metropolitan statistical area

Because retailers differ in size and make different decisions regarding their taxes and capital structures, analyzing ________Blank is the best way to compare the performance of one retailer to the performance of another retailer.

operating profit percent

Which element is included in a retailer's SWOT analysis?

opportunities and threats faced by a retailer from external factors

When retail stores are utilized as fulfillment centers

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

sales revenue, gross margin, and net profit margin are all examples of retailers' ________Blank measures.

output

Sasha owns a small boutique and doesn't have room to store inventory. She uses a public warehouse that is owned and operated by an independent company. This is a form of

outsourcing.

An illustrator finds it rewarding to convert stories into picture books and make then come alive for the children buying his books. In doing so, he fulfills his ________Blank objectives.

personal

Katich Bakery attends numerous farmers' markets in the suburbs and sells fresh baked breads. This retail format is referred to as

pop-ups.

A perceptual map is developed to identify how customers view competing retailers'

positioning.

What does an RFID tag do?

provides real-time tracking of the tagged product

The type of merchandise and services offered, pricing policy, advertising and promotion programs, store design and visual merchandising, typical locations, and customer services are categorized as ________Blank in a retail strategy.

retail format

A ________Blank is a group of consumers with similar needs that a group of retailers can service using a similar retail format to satisfy them.

retail market segment

When evaluating the performance of a retailer, what is the best financial performance measurement to utilize?

return on assets

Operating expenses would include all of the following except

shipping expense from the vendor to the retailer.

A food retailer buys 80% of his stock from local producers and employs people from the same region. In doing so, he fulfills the ________Blank objectives.

societal

After watching the 1937 movie Captains Courageous, Don wanted to buy a Chris-Craft wooden boat. Since he just received a large sum of money from his grandfather's will, he had the funds. Because these historic boats are unique and difficult to find, Don started searching on the Internet for potential wooden boat dealers across the United States. This situation is referred to as

specialty shopping.

A ________Blank occurs when an SKU that a customer wants is not available.

stockout

A retail strategy identifies the format the retailer plans to use to satisfy the

target market.

City-Style, a home furnishings company, plans to start posting on Instagram to reach young urban homeowners interested in mid-century decor. These homeowners represent the

target market.

A decrease in same-store sales indicates

that the retailer's business approach is not being well received by its customers.

Which step is essential to ensure that merchandise is floor-ready?

ticketing

What is the purpose of a mission statement?

to specify the scope of the activities that a retailer intends to undertake

A retail format development growth opportunity involves

using a different retail mix for the same target market.

A coffee roaster partnered with a grocery store chain to create a sales and inventory plan by store. The store's planner shared its past sales and inventory data and gave shelf space to the coffee roaster, 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.

Some parts of Centerville are restricted for residents only, while other parts of the city allow for retail stores. This illustrates

zoning laws.