Principles of Retailing Exam Solutions
Course Introduction
Principles of Retailing offers a comprehensive overview of the foundational concepts and practices that drive the retail industry. Students will examine the structure of retail organizations, the roles and responsibilities of retailers in the supply chain, and the strategies used to meet the changing needs of consumers. The course covers topics such as store layout and design, merchandising, pricing strategies, retail location decisions, customer service, and the impact of technology and e-commerce on traditional and online retailing. By exploring case studies and real-world examples, students will develop the analytical and practical skills necessary to succeed in various retail environments.
Recommended Textbook
Retailing 8th Edition by Patrick M. Dunne
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14 Chapters
1540 Verified Questions
1540 Flashcards
Source URL: https://quizplus.com/study-set/812 Page 2
Chapter 1: Perspectives on Retailing
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16087
Sample Questions
Q1) Jewelry stores are generally categorized as:
A) low-margin/high-turnover.
B) high-margin/low-turnover.
C) low-margin/low-turnover.
D) high-margin/high-turnover.
E) low-margin/moderate-turnover.
Answer: B
Q2) The best way to categorize retailers is:
A) by the U.S. Bureau of Census' three-digit North American Industrial Classification Systems (NAICS).
B) by the retailers' locations.
C) by the number of outlets the store maintains.
D) by the retailers' margins and turnover.
E) there is no single accepted method of classifying retail competitors.
Answer: E
Q3) The NAICS codes are an effective means of categorizing retailers as they reflect all types of retail activity.
A)True
B)False
Answer: False
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Chapter 2: Retail Strategic Planning and Operations Management
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16088
Sample Questions
Q1) Most retailers like to operate with a financial leverage ratio of 1.0 or greater so as to minimize debt.
A)True
B)False
Answer: False
Q2) A fully-developed retail marketing strategy specifies the:
A) level of financial performance sought and mix of financial statement components.
B) specific target market sought, location, the specific retail mix to be used, and the retailer's value proposition.
C) consumer and channel member behavior.
D) prices of goods to be sold.
E) retail mix to be used, specific target market sought, and budget available.
Answer: B
Q3) Price promotions usually attract,and subsequently hold,customers.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Retail Customers
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16089
Sample Questions
Q1) A cue refers to a motivating force that directs an individual's shopping behavior.
A)True
B)False
Answer: False
Q2) Which of the following statements about divorce is FALSE?
A) Retail purchases may be stimulated as a new household is created.
B) Time may become an even more critical factor in shopping decisions for the individuals involved.
C) Since 1960, the divorce rate in the U.S. has increased by 250 percent.
D) As women's wages rose, it became more profitable for them to enter the labor force; as a result, spouses have become less dependent on each other, and the divorce rate has increased.
E) Divorce, while creating new households, does not actually stimulate any new retail purchasing.
Answer: E
Q3) U.S.families today are having more children than they have had historically.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Evaluating the Competition in Retailing
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16090
Sample Questions
Q1) The _____ is the point where total revenues equal total expanses.
A) break-even point
B) matched point
C) stabilization point
D) profit maximization point
E) point of highest revenue
Q2) A market offers rows of exotic produce,fresh prime meats,seafood flown in fresh,a bakery filled with artisan breads and over 220 cheeses.This market is competing for customers on which major front?
A) The price for the value offered
B) Service level
C) Product selection
D) Location or access
E) Employee compensation
Q3) Retailers must remember that most department store shoppers value a product's brand name more than the product's style.
A)True
B)False
Q4) Explain why a retailer may wish to engage in a private label branding strategy.
Q5) Compare and contrast the four theories of retail evolution.
Page 6
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Chapter 5: Managing the Supply Chain
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16091
Sample Questions
Q1) A retailer should abandon a supply chain partner at the first sign of trouble.
A)True
B)False
Q2) Gray marketing is when counterfeit merchandise flows through unauthorized channels.
A)True
B)False
Q3) The major facilitating institution involved in storage is the:
A) private warehouse.
B) in-transit warehouse.
C) demand collection channel.
D) contract warehouse.
E) public warehouse.
Q4) Conflict is not always negative; at times,conflict can have the benefit of reminding channel members of their interdependency on each other and may actually increase channel performance.
A)True
B)False
Q5) Should facilitating institutions be eliminated from the supply chain? Why or why not?
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Chapter 6: Legal and Ethical Behavior
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16092
Sample Questions
Q1) The _____ Act makes it a federal crime to defraud consumers through use of the mail.
A) Sherman
B) Federal Trace Commission
C) Mail Fraud
D) Automobile Information Disclosure
E) Fair Packaging and Labeling
Q2) Dual distribution occurs when a manufacturer sells to independent retailers and also through its own retail outlets.
A)True
B)False
Q3) A _____ agreement exists when the supplier offers the retailer the exclusive distribution of a merchandise line or product,and in return the retailer agrees not to handle competing brands.
A) one-way exclusive
B) two-way exclusive
C) three-way exclusive
D) tying
E) full-line
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Page 8
Chapter 7: Market Selection and Retail Location Analysis
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16093
Sample Questions
Q1) Household income is the determining factor that results in differences between neighborhoods in the United States.
A)True
B)False
Q2) The household income of a trading area is not a factor that a retailer needs to consider when analyzing market potential.
A)True
B)False
Q3) _____ maps enable the retailer to use visual techniques such as colors,shading,and lines to display cultural characteristics of the physical space.
A) Three-dimensional
B) Dymaxion
C) Geographic
D) Thematic
E) Sociographic
Q4) Explain why a retailer should be concerned with market segmentation and identifying a target market.Define and discuss the three criteria that should be met to reach a target market.
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Chapter 8: Managing a Retailers Finances
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16094
Sample Questions
Q1) If the planned sales for the month are $70,000,the merchandise budget calls for a planned stock-to-sales ratio of 2.3,and the financial leverage is 1.1,then the planned BOM inventory should be:
A) $77,000
B) $84,000
C) $161,000
D) $177,100
E) $194,100
Q2) Net worth,often called owner's equity,is the difference between total assets and total liabilities.
A)True
B)False
Q3) By using a retail reporting calendar,retailers are able to make direct comparisons to prior years.
A)True
B)False
Q4) Stock overages are often due to bookkeeping errors.
A)True
B)False
Q5) Explain the components of the balance sheet.
Page 10
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Chapter 9: Merchandise Buying and Handling
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16095
Sample Questions
Q1) Which of the following is NOT a common buying error that may cause adjustments to be made to the retailer's OTB?
A) Buying the wrong type of merchandise
B) Buying merchandise at the wrong price levels
C) Having too much or too little basic stock on hand
D) Buying from very few vendors
E) Failing to identify the season's hot items early enough in the season
Q2) When a manufacturer quotes the same price for the same merchandise to buyers in Cleveland,Ohio; Los Angeles,California; and Orlando,Florida the manufacturer is probably quoting the retailers a _____ price.
A) zone
B) basing point
C) FOB destination
D) FOB equal
E) FOB shipping point
Q3) One of a retailer's greatest assets when dealing with a vendor is the retailer's past experiences with that vendor.
A)True
B)False
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Page 11
Chapter 10: Merchandise Pricing
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16096
Sample Questions
Q1) All of the following are typical pricing objectives EXCEPT:
A) target-return.
B) sales maximization
C) status quo.
D) profit maximization
E) sales-oriented.
Q2) Errors in buying occur on the demand side of the pricing equation.
A)True
B)False
Q3) Which of the following is NOT a characteristic of a retailer that prices below the market?
A) Provides minimal customer services
B) Low sales volume
C) Stocks closeout merchandise
D) Stocks fast-selling merchandise
E) Occupies modest facilities in a low-rent location
Q4) Bundling generally involves selling distinct multiple items offered together at a "special price."
A)True
B)False
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Chapter 11: Advertising and Promotion
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16097
Sample Questions
Q1) When retailers establish specific outcomes and then estimate the amount of advertising funds that are needed to achieve these results,it is called the:
A) budget allocation method.
B) affordable method.
C) task-and-objective method.
D) percentage-of-sales method.
E) co-op planning method.
Q2) The affordable method,percentage-of-sales method,and task-and-objective method are all methods used to determine the amount to be spent on:
A) inventory levels.
B) promotion.
C) market research.
D) store site selection.
E) customer satisfaction.
Q3) A retailer's location is not an important consideration when seeking to determine the target audience for a retailer's promotions.
A)True
B)False
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13
Chapter 12: Customer Service and Retail Selling
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16098
Sample Questions
Q1) A local stockbroker spent two hours explaining the benefits of owning IBM stock to a middle-aged couple.After listening to stockbroker,the couple decided not to buy IBM stock.The two hours the stockbroker spent with the couple would be considered:.
A) wasted time.
B) idle time.
C) nonselling time.
D) unproductive time.
E) selling time.
Q2) The most common measure of a salesperson's or sales force's performance is conversion rate.
A)True
B)False
Q3) Closing the sale is the action the salesperson takes when the customer decides to leave the store without making a purchase.
A)True
B)False
Q4) What are the various factors that a customer service and sales enhancement audit seeks to measure? What value is provided to management by measuring these factors?
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Chapter 13: Store Layout and Design
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16099
Sample Questions
Q1) The best way to improve sales is to place as much merchandise as possible into the store.
A)True
B)False
Q2) Successful retailers place merchandise randomly throughout the store.
A)True
B)False
Q3) The _____,which can hold a wide variety of merchandise by means of hardware hung from the vertical spine,is the workhorse fixture in hardlines departments.
A) table
B) round rack
C) gondola
D) basket
E) flat-base decks
Q4) Explain why smell and sound so important when designing a store's environment.How is lighting used in conjunction with smell and sound?
Q5) What are the various types of signage used by a retailer? Provide examples of each type.
Q6) How can a virtual store drive repeat visits and encourage purchasing?
Page 15
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Chapter 14: Managing People
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16100
Sample Questions
Q1) In North American retailing,there is an attitude that the retailers' "plan" is correct and the failure to achieve this plan is attributed to people not working hard or smart enough.
A)True
B)False
Q2) The increase in square footage in a retailers store from 20,000 square feet to 40,000 square feet is an example of:
A) form reconfiguration
B) time reconfiguration
C) possession reconfiguration
D) place reconfiguration
E) expansion
Q3) During the "to market" era the major challenge was:
A) identifying a target market.
B) bringing merchandise to the market.
C) selling the merchandise.
D) determining the cost of merchandise.
E) locating a supplier of the merchandise.
Q4) Compare and contrast the customer-centric view of retailing and the traditional or firm-centric view.
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