Retailing Exam
Select a.
A
At the new toy store that opened near his home, Ryan noticed all the products were priced at $.49, $.79, or $.99 endings. What type of pricing is the store following?
Odd pricing
Double blank Question
Owned; Paid
Customers who shop at Barney's find that it has a large selection of books. In addition, to a helpful and friendly staff. Furthermore, they can enjoy a peaceful place to read while sipping a cappuccino at its in-store cafe. This intimate perception of the store indicates its _______ strategy.
Positioning
A Retail Market segment is a group of consumers who are attracted to the same retail mix because they have similar needs.
TRUE
Customers engage in extended problem-solving when the purchase decision involves a lot of risk.
TRUE
Due to the intangibility of their offerings, service retailers often use tangible symbols to inform customers about the quality of their services.
TRUE
Extreme value retailers have a broad appeal to budget-conscious consumers.
TRUE
Lity Smart Fashions...
TRUE
Making an unplanned purchase is an example of.
TRUE
Multichannel and omnichannel retailers Lan leverage their stores to lower the cost of fulfilling orders and processing returned merch.
TRUE
Retailing offers entrepreneurial opp.
TRUE
When consumers go shopping for pleasure, they are seeking to satisfy their hedonic needs.
TRUE
Cafe focuses primarily on residents who are ages 18-35 and earn about $30,000 to $60,000 annually. This segmentation of customers is known as its
Target market
B&B Grocery and Meats is located in Des Moines, Iowa. The owner has taken a map... what's referred to as the store's
Terriary trading area.
A retailer's role in a supply chain is to...
add value to products
During the first few months of the COVID-19...
black market
For What purpose NAILS used?
classify retailers based on types of products and services
Noel...7 Cs...
context elements
While vacationing in Maine, Trey had dinner at the Lobster Shack. He loved his meal so much that he posted a picture of his lobster dinner to his instagram account along with a glowing review about how much he liked the restaurant. What type of media does this represent?
earned media
Typically, changing importance weights is harder than changing performance beliefs because
importance weights reflects the customers value
Parents shopping for their children's school uniforms and stationery are motivated by _____ which involve accomplishing a specific task.
utilitarian needs
Floral Expressions is a chain of flower shops offering a variety of flowers and ornamental plants. It recently opened a distribution center to supply ornamental plants and cut flowers to all its stores within a 300-mile radius. From the given scenario, it can be seen that Floral Expressions is practicing
vertical integration
What is an advantage of freestanding locations?
High vehicular traffic
Antonio wanted to know what the net sales and the net profit after tax were last year for his nephew's business. Antonio should look at the store's
Income statement.
COGS includes what the retailer pays to suppliers for the merchandise the retailer sells.
True
Evely buys a worm far (math question)
=534 1201/3-0.75
In response to a growing trend of workers eating at their work stations, Protect Your Stuff, an Internet retailer, offers a line of products that can be used to protect office equipment and furniture, including a plastic sheath for a computer keyboard, and a spillproof cup. Last year, its net sales were $1,450,000 with cost of goods sold for $353,000. The company's expenses last year totaled $960,000. Calculate the company's net profit percentage.
9.4% (Net profit margin/Net sales) * 100
Communication objectives are specific goals related to the retail communication mix's...
True
When a swimwear buyer negotiates for delivery and exclusivity with a vendor, what would a buyer typically want?
A buyer would want unique swimwear that no one else sells.
When customers join the Daily Needs Rewards Zone, they receive one point on every purchase... This strategy by Daily Needs is an example of
A customer loyalty program.
Fashion merchandise consists of items that are not in continuous demand over an extended period
True
Frequent shopper programs can easily be duplicated by competitors.
True
In ABC analysis the SKUs in merchandise...
True
Retailers often find the 80-20 principle... what is the 80-20 rule?
Approximately 80% of a retailer's sales come from 20% of its products.
Top 4 Grossing Movies:
Avatar, lion King, avengers, titanic.
Seasonal merchandise consists of items whose sales fluctuate depending on time of year
True
Garden Fresh Question...act of offering products in smaller quantities is known as...
Breaking Bulk
Which value-creating activity has retailers offering products in quantities tailored to customer's consumption patterns?
Breaking Bulk
The availability of national brands can affect a customer's image of the retailer
True
What is the first step in merchandise management planning?
Developing a forecast for category sales.
Trevor is excited to have purchased his first car—a new SUV. However, he just saw a news article that the SUV model he purchased did not get good safety reviews. Trevor now wonders if he made the right choice. This scenario illustrates the concept of
Cognitive Dissonance
The strategic profit model is useful to retailers because it
Combines profit margin management and asset management.
Before purchasing his son's shoes, DeWayne evaluated the following stores: Boot World, Brady's Shoe Palace, Imperial Collection, Empire Shoe Store, and Leather World. What term is used to describe these stores that are being evaluated by DeWayne?
Consideration bet
Craig was late to work one morning and decided to use the McDonald's drive-through for his morning cup of coffee. Normally a coffee drinker loyal to Starbucks, Craig was trying to save time and the Starbucks was out of his way. Which form of shopping best describes Craig's shopping situation?
Convenience shopping
For retailers, engaging visitors, encouraging them to spend time viewing and interacting with their website?
Core Goals
The rent on a storefront would be classified as a(n)
Cost of goods sold.
Cool creations... what technique is being used?
Crowd sourcing
At the Mall of America, all children's specialty stores are on the ground floor and are near the Rainforest Cafe, which also targets adults with children. This would be an example of the principle of
Cumulative attraction.
Which type of assets can be converted into cash within one year?
Current assets.
Although Marina visits several retailers when shopping, she always buys her suits at Elan Clothers. Which approach demonstrates her affinity for Elan Clothers?
Customer Loyalty
The Blackberry Cafe features light cuisine and folk entertainment. It is located in the middle of an upper-class neighborhood... What is the Blackberry Cafe engaging in?
Customer spotting
The customer lifetime value (CLV) is typically forecasted using customers past behavior.
True
EXAM 1 (TRUE/FALSE)
EXAM 1 (TRUE/FALSE)
EXAM 1 REVIEW
EXAM 1 REVIEW
EXAM 2 (TRUE/FALSE)
EXAM 2 (TRUE/FALSE)
EXAM 2 REVIEW
EXAM 2 REVIEW
EXAM 3 (TRUE/FALSE)
EXAM 3 (TRUE/FALSE)
EXAM 3 REVIEW
EXAM 3 REVIEW
A retailers social media pages end mobile apps are forms of paid media.
FALSE
A contenancy clause prohibits the shopping center management from leasing to retailers that sell competing products.
False
Cookies are not equipped to track customer interactions on social networking sites.
False
Generally, as the price of a product increases, sales increase.
False
Market expansion approaches include developing new retail formats for the same target market.
False
Sales promotions are funds vendors give retailers to cover loss gross margin...
False
Self-gratification for the retailer is classified as a social objective.
False
The Objective -and -task method use past sales and communication activities to...
False
The inner city is the traditional downtown financial and business area in a city or town.
False
When consumers are engaged in comparison shopping situations, they don't want to spend a lot of time evaluating different brands
False
The high-low pricing strategy helps slow-moving merchandise.
True
By knowing the return on assets for a bakery, an owner will know
How much profit was generated relative to the bakery's assets.
What is typically the last step in developing a retail communication program?
Implement and evaluate programs.
_____ refers to the number of times an ad appears in front of the user
Impressions
Which channel allows the customer the most unlimited info ab products?
Internet
What is the most likely outcome when a retailer sells counterfeit merchandise?
It can destroy the relationship with the vendor of the legitimate brand
Which statement is true of a sustainable competitive advantage?
It is not easily copied by the competitors.
Based on the following customers purchase data, which customer would have a higher lifetime value to the retailer?
Jalene
When a vendor agrees to pay a charge to a retailer so the retailer will stock its product...
True
Walgreens has a rapid growth in their store openings. Many times, they have stores within just a few blocks of each other. This is an example of Walgreens practicing...
Market penetration
In perceptual maps, retailers that are closer to an ideal point are evaluated
More favorably by the consumers.
Which statement is a reason why U.S. retailers avoid opening stores in the ...
More risk and lower return than other areas
Macy's department stores are typically located in malls. This is a(n) _______ location
Planned
Which statement is true of the gold segment members in the customer pyramid?
Price plays a greater role in their decision making process.
In terms of trade areas, the owner of Bubba's Bar and Grille defines his __________ as the geographic area in which 70% of his customers live.
Primary trading area
Which statement describes an approach that is used to deal with unprofitable customers?
Retailers charging a restocking fee for returned merchandise.
Which of the following is a drawback for a retailer offering national brands?
Retailers have to discount some national brands in order to attract customers
The _____ blank method uses past sales and communication activities...
Rule of thumb
Although retailers gain economies of scale from opening multiple locations in an area, they also suffer diminishing returns associated with locating too many additional stores in an area. This is called:
Sales cannibalization
When Manuelo saw pastries and coffee being sold at his local bookstore, he knew it was an example of _________, which is the juxtaposition of unrelated merchandise in the store
Scrambled merchandising
Begging in late October, department stores... This is an example of _______ merchandise.
Seasonal
Office Depot stocks paper, pens, ... These are ________ merchandise.
Staple
Which statement holds true for the purchase of staple merchandise?
Staple merchandise is purchased using a cont. replenishment system by monitoring sales and generating replacement orders.
A _______ is the smallest unit available for inventory control
Stock-keeping unit
Why is constructing a data warehouse more difficult than for.....
Store purchases can be made with cash, third-party credit cards, or mobile apps.
What is the example of a fixed cost for a bridal gown shop?
The cost of the mannequin used to display current gowns.
A retailer's magazine advertising campaign builds an image of elegance and high fashion...
The manager should develop an integrated marketing communication program.
What are the two basic types of leases?
The percentage lease and the fixed-rate lease
What is valve?
The relationship between what consumers receive and what they pay for it.
Why are category specialists sometimes called category killers?
They can dominate a category of merchandise
What tactic have competing food retailers used to put pressure on supermarkets?
They have invested in state-of-the-art supply chains to reduce inventories.
Which site characteristic refers to potential customers' ability to exit the highway and enter the parking lot safely?
Traffic flow and accessibility
A food court is an example of utilizing the principle of cumulative attraction.
True
In the 1950s and 1960s, interstate highways were built at a rapid pace, often through cities using the right-of-way laws that went through neighborhoods and rendered unlivable. This often led to
Urban decay
Gina's Gift Shop sells greeting cards, home accents, and jewelry. These merchandise categories are referred to as the store's
Variety
Deena went to her neighborhood grocery because it advertised a good price on melons from California, but when she got there, the produce manager explained that they were out of the California melons and convinced her to buy the more expensive imported melons because they were much better. This could be considered
a bait and switch
Which element would fall under the communication category in digital retailing?
a live chat feature
P&G has a new brand of toothpaste that it wants to sell in national grocery chains. To convince the groceries to give it shelf space ...
a slotting allowance
Which shopper is fulfilling hedonic needs?
a teenager shops with his friends for video games
Which of the following is not a benefit of a store channel shopping experience?
expanded assortments
Juanita is about to be married in two months. When she shopped for the bridesmaids' gowns, her gown, and flowers for the ceremony, she spent a lot of time in deciding what to buy. She was not sure whether her parents, in-laws, and fiancé would like her selections. Which form of purchase decision process did Juanita engage in?
extended problem-solving
Which of these is neither a store or national brand?
generic brand
Under the competitive parity method, the communication budget is set so that _____.
it is equal to the communication expenditure of competitors.
Which of these is the least likely factor that retailers consider in setting prices?
language barriers
When customers have some prior experience with the product and the risk is moderate, like the purchase of a new frying pan, the engage in;
limited problem-solving.
Grocers Square is a large supermarket. Morning Bites is an example of a
premium store brand
Michael's vacation to Chicago for $1,000... This form of pricing is referred as...
price bundling
The _____method for evaluating vendors uses a weighted-average score for each vendor
multiattribute analysis
Darlene's is an apparel store that also offers online shopping apart from its stores. Therefore, Darlene's is a(n):
multichannel Retailer
Tide, Ralph Lauren, and Hewlett are all examples of...
national brand
Marvin's is a large clothing retailer. The store offers over 1,000 brands and 50,000 different products. Which value-creating activity can best be seen in the given example?
offering assortments
Which would be considered an internal source of product info, for a customer?
past shopping experiences
Retailers use the _____ method to determine the communication budget...
percentage - of- sales
Retailers can reduce showrooming by?
promoting private label merchandise
Retailers that have a website with store locations, store hours, product information, product reviews, promotion information, instant chats, etc. offer which type of value added activity?
providing services
Bradley wanted to analyze the performance of his merchandise planning process, so he compared planned sales to actual sales. after doing this, he determined that he needed to mark down some items to reduce inventory of those items. which analysis did bradley perform?
sell-through analysis
Anton is very particular about the clothes he buys. He doesn't like fabric that itches his skin and he has a hard time getting clothes to fit him. What benefit would shopping in a store give Anton over other retail channels?
the ability to touch the fabrics.