Retail and Distribution Management
Exam Materials
Course Introduction
Retail and Distribution Management explores the fundamental principles and strategies behind the effective movement of goods and services from producers to consumers. The course delves into the structure of retail organizations, the dynamics of supply chain management, inventory control, merchandising, store layout, and the impact of technology on retail operations. Students will analyze real-world distribution channels, evaluate retail formats, and understand challenges such as inventory shrinkage, channel conflict, and evolving consumer expectations. The course equips learners with practical skills to develop competitive retail strategies, manage vendor relationships, and optimize distribution networks to enhance customer satisfaction and business profitability.
Recommended Textbook
Retailing 8th Edition by Patrick M. Dunne
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1540 Verified Questions
1540 Flashcards
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Page 2
Chapter 1: Perspectives on Retailing
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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) Which of the following characteristics is NOT desirable for a retail manager to possess?
A) Enthusiasm
B) Creativity
C) Analytical skills
D) Indecisiveness
E) Initiative
Answer: D
Q3) Retailing accounts for 20 percent of the worldwide labor force.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Retail Strategic Planning and Operations Management
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Sample Questions
Q1) Which of the following is NOT an example of a financial performance goal?
A) Increase return on assets from 8 percent to 9 percent.
B) Increase asset turnover from 2.5 to 2.8.
C) Increase market share by 20 percent.
D) Increase space productivity by 5 percent.
E) Reduce financial leverage from 2.1 to 2.0.
Answer: C
Q2) Essentially,a retailer's mission statement describes the fundamental nature,rationale,and direction of the firm.
A)True
B)False
Answer: True
Q3) A retailer's retail mix consists of all of the following EXCEPT:
A) location.
B) price.
C) customer service and selling.
D) traffic strategy.
E) merchandise.
Answer: D
Page 4
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Chapter 3: Retail Customers
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Sample Questions
Q1) Second-generation Hispanic Americans,who have been immersed in American culture,are very similar in their shopping behavior to foreign-born Hispanics.
A)True
B)False
Answer: False
Q2) Although older consumers tend to be more skeptical and less interested in shopping,retailers who ignore boomers are limiting their success.
A)True
B)False
Answer: True
Q3) If the customer's total shopping experience has met or exceeded their expectations,the customer is said to be satisfied.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Evaluating the Competition in Retailing
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Sample Questions
Q1) Strategic plans that provide a differential advantage lead to high profit only if competitors need large amounts of time or money to overcome them.
A)True B)False
Q2) The distinction between monopolistic competition and oligopolistic competition is that in monopolistic competition there are fewer sellers than in oligopolistic competition.
A)True B)False
Q3) Explain the difference between monopolistic and oligopolistic competition.
Q4) Retailers today can expect an increase in competition from both nonstore retailers and the introduction of new retailing formats that will change the way retailing currently occurs.
A)True B)False
Q5) Retailers must always match or be lower than the competitor's price. A)True B)False
Q6) Explain why a retailer may wish to engage in a private label branding strategy.
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Chapter 5: Managing the Supply Chain
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Sample Questions
Q1) The presence of legitimate power is most easily seen in:
A) retailed-owned cooperatives.
B) franchises.
C) administered vertical marketing channels.
D) dependency.
E) contractual marketing channels.
Q2) Auto dealers that want to handle BMW's because of the cars' status is an example of expertise power.
A)True
B)False
Q3) What type of vertical marketing channel has a well established authority structure?
A) Franchise system
B) Contractual vertical marketing system
C) Conventional marketing system
D) Corporate vertical marketing systems
E) Wholesaler-sponsored voluntary group
Q4) Discuss the three types of behaviors and attitudes that facilitate relations to resolve conflict that inevitably occur in every retail supply chain.Why is collaboration important in channel relations?
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Chapter 6: Legal and Ethical Behavior
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Sample Questions
Q1) Attempts by a manufacturer to limit the geographical area in which a retailer may resell its products are called _____ restrictions.
A) geographical
B) sales
C) territorial
D) tying
E) physical
Q2) All of the following EXCEPT _____ are included in the top categories for counterfeit products sold in the United States.
A) video games
B) apparel
C) handbags
D) watches
E) golf clubs
Q3) What are the advantages and disadvantages of dual distribution? Independent retailers argue that it is an unfair method of competition.Do you agree or disagree? Explain your answer.
Q4) Which laws,federal,state,or local,are the most important for a retailer to understand and comply with? Explain your answer.
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Chapter 7: Market Selection and Retail Location Analysis
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Sample Questions
Q1) Explain how the concepts of demand density,supply density and site availability can be used by a retailer to optimize site selection.
Q2) A retailer's home page on the Internet is equivalent to a local retailer's storefront.
A)True B)False
Q3) When deciding to enter a new market,a retailer should examine the square feet per store,square feet per employee,growth in stores,and quality of competition.
A)True B)False
Q4) A neighborhood shopping center generally has a primary trade area of:
A) 1 mile.
B) 3 miles.
C) 8 miles.
D) 15 miles.
E) 25 miles.
Q5) As consumer mobility increases,the size of a store's trading area will decrease. A)True B)False
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Chapter 8: Managing a Retailers Finances
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Sample Questions
Q1) An income statement:
A) shows the estimated cash inflows and outflows for the period.
B) gives the retailer a summary of the firm's financial position at a given point in time.
C) is usually only prepared when the retailer is seeking to obtain a loan.
D) provides a summary of the sales and expenses for a given time period.
E) is the only financial statement that shows the retailer's retained earnings.
Q2) A balance sheet can be expressed as:
A) profit = sales - reductions.
B) net worth = operating profit - operating expenses.
C) net worth = assets - expenses.
D) assets = liabilities + net worth.
E) assets = sales - expenses.
Q3) Which of the following figures is NOT found on a six-month merchandise budget?
A) Planned sales percentage
B) Planned retail purchases
C) Inventory depreciation
D) Planned gross margin dollars
E) Planned EOM stock
Q4) Explain the steps involved in developing a six-month merchandise budget.
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Chapter 9: Merchandise Buying and Handling
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Sample Questions
Q1) How can the retailer minimize theft at the incoming merchandise point?
Q2) The _____ method of merchandise planning requires that,in addition to a base stock level,there will be a variable amount of inventory that will increase or decrease at the beginning of each sales period.
A) base level
B) base BOM contribution
C) basic stock
D) stock-to-sales
E) average stock
Q3) The annual cost to retailers for carrying inventory is between 15 to 20 percent.
A)True
B)False
Q4) _____ refers to the management of merchandise categories,or lines,rather than individual products,as a strategic business unit.
A) Category management
B) Breadth management
C) Assortment management
D) Brand management
E) Merchandise management
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Chapter 10: Merchandise Pricing
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Sample Questions
Q1) Pricing policies are rules of action,or guidelines,that ensure uniformity of pricing decisions within a retail operation.
A)True
B)False
Q2) Reductions in the price of an item that are taken in order to stimulate sales are termed:
A) maintained price cuts.
B) promotional price cuts.
C) shortages.
D) markdowns.
E) initial price cuts.
Q3) Flowers tend to be priced higher when demand is greatest,around Mother's Day and Valentine's Day.This is an example of _____ pricing.
A) flexible
B) dynamic
C) psychological
D) variable
E) customary
Q4) When making a pricing decision,what other factors should a retailer consider?
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Chapter 11: Advertising and Promotion
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Sample Questions
Q1) Mastercard's "Priceless" ads are examples of a lifestyle advertising approach.
A)True
B)False
Q2) Which of the following is an accurate statement about the scheduling of advertising?
A) The higher the degree of habitual purchasing of a product class, the more the advertising should precede the purchase time.
B) Advertisers should always seek to have a higher CPM than CPM-TM.
C) Advertisements should be scheduled to always run in the Sunday paper.
D) Advertisements should be scheduled without regard to the CPM-TM that is applicable.
E) Advertisements should be concentrated during periods of lowest demand in order to pick up additional sales.
Q3) Retailers generally promote the price of a product in their ads,while the manufacturers promote the features of the product.
A)True
B)False
Q4) Discuss how retailers manage their sales promotion and publicity.
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13
Chapter 12: Customer Service and Retail Selling
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Sample Questions
Q1) The sales presentation is the first step in the retail selling process.
A)True
B)False
Q2) Nordstrom offers its customers a free dress shirt if it is ever out of stock on any of the basic sizes.This policy is an example of:
A) price management.
B) building and fixture management.
C) promotion management.
D) credit management.
E) merchandise management.
Q3) Customers who tend to postpone all decisions,and who want the salesperson to make the decision for them,are characterized as:
A) sociable.
B) defensive.
C) interrupters.
D) indecisive.
E) impulsive.
Q4) Explain the methods a retailer uses to evaluate its sales force and individual salespeople.
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Chapter 13: Store Layout and Design
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Sample Questions
Q1) Interior design can be broken into two types of elements: the finishes applied to surfaces and architectural shapes.
A)True
B)False
Q2) Which of the following is NOT part of a retailer's visual communications program?
A) Store name and logo
B) Background music
C) Institutional signage
D) Directional and category signage
E) Lifestyle graphics
Q3) To be most effective,merchandise should be displayed in vertical bands of color wherever possible.
A)True
B)False
Q4) Small,expensive items are usually stocked in very high fixtures to discourage shoplifting.
A)True
B)False
Q5) What psychological factors should be considered when merchandising stores?
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Chapter 14: Managing People
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Sample Questions
Q1) ____ is when a retailer reframes its business in terms of the time it performs certain activities and offers service.
A) Form reconfiguration
B) Place reconfiguration
C) Possession reconfiguration
D) Target marketing reconfiguration
E) Time reconfiguration
Q2) The rapid growth of chain stores occurred during the 1940's.
A)True
B)False
Q3) The two types of interfacing are soft interfacing and_____ interfacing.
A) complex
B) simple
C) hard
D) cognitive
E) affective
Q4) Population density creates the concentrated customer demand that enables retailers to provide any imaginable offering.
A)True
B)False
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