Retail Buying and Merchandising
Mock Exam
Course Introduction
Retail Buying and Merchandising explores the fundamental concepts and practices involved in selecting, procuring, and presenting merchandise within retail environments. The course examines the role of the buyer, strategic planning in assortment, vendor selection, pricing and negotiation strategies, and inventory management. Emphasis is placed on understanding consumer behavior, the relationship between buying and merchandising, trend forecasting, and the use of data analytics in decision making. Students will also analyze case studies and industry examples to develop practical skills in creating effective merchandising plans that maximize profit and align with brand identity.
Recommended Textbook
Retailing Management 4th Canadian Edition by Michael Levy
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15 Chapters
1641 Verified Questions
1641 Flashcards
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Chapter 1: Introduction to the World of Retailing
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) Provinces with the highest retail sales in order are:
A) Ontario, British Columbia, Quebec, and Alberta
B) Ontario, Alberta, Quebec, and British Columbia
C) Alberta, Atlantic Canada, Ontario, British Columbia, and Quebec
D) Ontario, Quebec, Alberta, and British Columbia
E) Quebec, British Columbia, Prairies, Ontario, and Atlantic Canada
Answer: D
Q2) Which of the following is not a part of the retail mix for a furniture store?
A) Competitive response
B) Furniture assortments
C) The location of the store
D) Store credit card
E) Television commercials
Answer: A
Q3) What is the retailer's role in the distribution channel?
Answer: The retailer's role in the distribution channel is to link manufacturers to consumers by directing their efforts to satisfying the needs of the ultimate consumers.
Q4) A(n)_____ is a business that sells products and services to ultimate consumers. Answer: retailer
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Chapter 2: Types of Retailers
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104 Flashcards
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Sample Questions
Q1) Depth of merchandise is often referred to as the:
A) variety
B) complete retail offering
C) number of items within each product line
D) object of the buy
E) retail mix
Answer: C
Q2) What is one way a convenience store can develop a sustainable advantage against competition?
A) Close less convenient locations
B) Extend hours of operation
C) Nothing: convenience stores are becoming extinct
D) Open more stores
E) Sell prepared meals
Answer: E
Q3) What are three issues retailers face when they want to integrate across multiple channels?
Answer: Centralized customer database,consistent brand image,merchandise assortment and pricing.
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Page 4
Chapter 3: Customer Buying Behaviour
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) A retailer in Winnipeg who wants to open a store that will sell surfboards and surfing accessories would most likely have trouble with:
A) competition
B) flexibility
C) media capability
D) rationality
E) size of the market
Answer: E
Q2) Why should retailers understand how families make purchase decisions?
A) Brand choice decisions may be influenced by children and not by the shopper.
B) Children influence family buying decisions.
C) Family purchase decisions consider the needs of all family members.
D) Retailers can attract customers by satisfying needs of all family members.
E) All of these.
Answer: E
Q3) Sears sells Craftsman tools which come with a lifetime warranty.If you break one,just return it to the store,and Sears will replace the broken tool with a new one.What kind of segmentation is Sears using?
Answer: Benefit segmentation
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Page 5
Chapter 4: Retail Market Strategy
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120 Flashcards
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Sample Questions
Q1) The Atlantic Inn is located on Cape Breton Island.It has a 100-year history of visitors and vacationers from all over the world.The Inn exudes luxury from the moment you walk to the moment you savour the fine cuisine in its restaurant.The rooms are decorated with furniture from the early 20<sup>th</sup> century.Visitors are served beverages on the porch as they rock in the chairs and watch the port.This model of luxury is part of The Atlantic Inn's _____________.
A) culture
B) marketing program
C) perception
D) positioning
E) strategy
Q2) The first step in the strategic retail planning process is to:
A) identify strategic opportunities
B) develop a retail mix
C) define the business mission
D) conduct the situation audit
E) assess the strengths and weaknesses of the business relative to its competition
Q3) What are the steps in the strategic retail planning process?
Q4) Why is competition not as intense in growth markets as it is in mature markets?
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Chapter 5: Retail Locations Strategytrade Area Decisions and
Site Assessment
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160 Verified Questions
160 Flashcards
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Sample Questions
Q1) Burger King seeks locations where their major competitor is McDonald's because they believe it's important to have a strong competitor so Burger King can develop methods to allow them to successfully compete with them.These locations could be considered as:
A) competitive trade areas
B) overstored trade areas
C) saturated trade areas
D) understored trade areas
E) trade specific locations
Q2) In the face of problems and declining business,what are malls doing to combat the problem?
Q3) Why have airports become popular with national retail chains?
Q4) A store that does not create its own traffic and whose trade area is determined by the dominant retailer in the shopping centre is considered a:
A) secondary store
B) primary store
C) destination store
D) symbiotic store
E) tertiary store
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Chapter 6: Store Design, layout, and Visual Merchandising Strategy
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) Which colours are you most likely to find in a fast-food restaurant?
A) Red and yellow
B) Black and grey
C) White, eggshell, and other white hues
D) Blue and green
E) Green and white
Q2) Maps that describe the location of merchandise based on profitability are called:
A) plan-o-rama
B) planograms
C) strategic locators
D) profitability plans
E) map-o-grams
Q3) In which of the following stores would you be most likely to encounter a rounder?
A) Winners, an off-price clothing retailer
B) Sherlock, a store for mystery book lovers
C) The Brew House, a store that sells everything required to brew your own beer
D) Shoppers Drug Mart drugstores
E) Home Depot building supplies
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Chapter 7: International Retailing Strategy
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43 Flashcards
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Sample Questions
Q1) The failure of Canadian retailers in the U.S.market has been due to:
A) failing to conduct adequate research
B) not devoting enough money to the market entry
C) underestimating the competitiveness of the U.S. market
D) both failing to conduct adequate research and not devoting enough money to the market entry
E) all of these
Q2) What is Bawadi supposed to achieve according to Dubai's Strategic Plan 2015?
Q3) Using a multinational strategy,retailers will/can:
A) replicate their standard retail format and centralized management throughout the world in each new market.
B) change their products and image to reflect the international marketplace.
C) develop franchising initiatives based on its standard?ized form of doing business in return for a substantial franchise fee.
D) follow the international marketing practices of McDonald's, The Gap and The Body Shop.
E) expand rapidly but are learning little from their internationalization.
Q4) North America's largest shopping mall is ___________________________.
Q5) Why is international expansion risky for retailers?
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Chapter 8: Financial Strategy
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109 Flashcards
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Sample Questions
Q1) __________________ are costs incurred in the normal course of doing business to generate revenues.
Q2) Bernie wanted to know what the net sales and the net profit after tax were during the year 2004 for his nephew's business,The Big Man Shop.Bernie should look at the store's:
A) balance sheet
B) financial leverage statement
C) income statement
D) profitability statement
E) strategic profit model
Q3) _______________ equals a company's net sales divided by its total assets.
A) Asset turnover
B) Current Ratio
C) Gross margin
D) Net sales margin
E) Return on assets
Q4) Net profit measures the profitability of the entire firm,while ______________ measures the profitability of merchandising activities.
Q5) How do retailers ease the financial strain caused by accounts receivable?
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Chapter 9: Information Systems and Supply Chain Management
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105 Flashcards
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Sample Questions
Q1) _____________________________ is the computer-to-computer exchange of business documents from retailer to vendor and back.
Q2) In a(n)__________,merchandise is allocated to stores on the basis of forecasted demand.Once a forecast is determined,specified quantities of merchandise are shipped to distribution centres and stores at predetermined time intervals.
A) push supply chain
B) cross check logistic strategy
C) influential logistic strategy
D) pull supply chain
E) cost efficient logistic strategy
Q3) What is an advantage of using RFID over traditional bar codes?
A) RFID eliminates the bullwhip effect
B) RFID technology is inexpensive
C) RFID holds more data stored on the device
D) RFID makes tagging and pricing at DCs unnecessary
E) RFID cannot acquire data in harsh environments without a visual line of sight
Q4) A(n)___________________ houses the coordinated and periodic copying of data from various sources,both inside and outside the enterprise,into an environment ready for analytical and informational processing.
Page 11
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Chapter 10: Merchandise Management
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79 Verified Questions
79 Flashcards
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Sample Questions
Q1) A vendor who forms an alliance with a retailer to help gain consumer insight,satisfy consumer needs,and improve performance and profit potential across an entire category is called a(n)__________________.
Q2) The process by which a retailer attempts to offer the right quantity of the right merchandise at the right time while meeting the company's financial goals is called
Q3) What is the difference between merchandise management and category management?
Q4) How can increasing assortment adversely affect customers?
Q5) Where are you most likely to find staple merchandise?
A) Computer software
B) Department store
C) Manufacturer's outlet
D) Superstore fashion boutiques
E) Grocery Stores
Q6) Of variety,assortment,and product availability,which is the most strategic? Explain your answer.
Q7) How does top management set the merchandising direction for the retail company?
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Q8) Compare and contrast broad and shallow assortment planning with that of narrow and deep assortment planning.
Chapter 11: Buying Strategies
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111 Verified Questions
111 Flashcards
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Sample Questions
Q1) What are the series of phases in a strategic partnership that are characterized by increasing levels of commitment?
Q2) Why should retailers be interested in reducing tariffs?
Q3) Which of the following is best described by tangible investment in a strategic relationship?
A) Mutual trust
B) Partnering
C) Credible commitments
D) Common goals
E) Open communication
Q4) Foods with no brand names and household products are examples of _______________ brands found in Loblaws supermarkets.
A) generic
B) copycat
C) complementary
D) premium
E) parallel
Q5) What are the pricing methods retail exchanges utilize?
Q6) Why is collaboration possibly the most important benefit of retail exchanges?
Page 13
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Chapter 12: Retail Pricing
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) Which of the following statements is/are true?
A) Under the cost-oriented method, the retail price is determined by adding a fixed percentage to the cost of the merchandise.
B) With the demand-oriented method, prices are based on what customers expect or are willing to pay.
C) The keystone method of setting price involves doubling the cost of the merchandise to obtain the initial retail selling price.
D) All of these statements are true.
E) None of these statements are true.
Q2) Instead of relying on rules developed from averages,a retailer can benefit significantly from _______________________________________,a set of algorithms that monitors merchandise sales,promotions,competitors' actions,and other factors to determine the optimal (most profitable)price and timing for merchandising activities,especially markdowns.
Q3) In the __________________ method,retailers set prices simply by doubling the cost of the merchandise to obtain the original retail selling price.
Q4) What are the two reasons retailers take markdowns?
Q5) How can a retailer reduce price competition?
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Chapter 13: Human Resource Management and Staff Training Issues
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151 Verified Questions
151 Flashcards
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Sample Questions
Q1) Customer needs and preferences for consumer electronics are very similar across the country.What organization form would you suggest for a national consumer electronics retailer?
A) Centralized
B) Mazur structure
C) Decentralized
D) Specialized
E) Generalized
Q2) In order to better react to local market conditions,retailers are relying more on their
Q3) Which of the following is additional compensation that is periodically awarded to employees on the basis of their performance?
A) Benefit
B) Commission
C) Gratuity
D) Bonus
E) Perquisite
Q4) What is diversity training?
Q5) High turnover reduces sales and increases _____________.
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Chapter 14: Building Customer Loyalty: Customer
Relationship Management and Service Strategies
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185 Verified Questions
185 Flashcards
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Sample Questions
Q1) An ad campaign by Holiday Inn in which the motel chain promised its guests,"No surprises," meaning that everything encountered at the motel would meet or exceed customer expectations.Since it is nearly impossible to predict customer expectations,the campaign was quickly abandoned.What kind of a service gap did Holiday Inn create with this ad campaign?
Q2) On Tuesday,Jed went to the bakery and ordered a dozen bagels for work.When he got to work,he discovered the bagels were stale and almost inedible.The next morning he stopped by the bakery to complain.Which is the least effective way to deal with Jed's complaint?
A) give him a coupon for free coffee now
B) give him a $2.00 discount on his next purchase
C) offer him a free replacement dozen bagels
D) offer him a heartfelt and sincere verbal apology
E) provide him with a coupon for a free Continental breakfast on his next visit
Q3) What are cookies?
Q4) Selling additional new products and services to existing customers is called
Q5) What information is generally included in the privacy policies of most online retailers?
Q6) What is a service gap?
Page 16
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Page 17
Chapter 15: Appealing to the Customer: Retail Communication Mix
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96 Verified Questions
96 Flashcards
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Sample Questions
Q1) What medium do retailers use for image advertising because the reproduction quality is high?
Q2) ___________________ is the number of times a potential customer is exposed to a retailer's ad.
Q3) Why is marginal analysis not widely used for setting the communication budget?
Q4) How does a strong brand image enable retailers to increase their margins?
Q5) The "Roll up the Rim to Win" contest would be an example of a ______________ consumers have with Tim Hortons.
A) brand memory
B) brand association
C) brand awareness
D) brand exposure
E) brand recall
Q6) _____________ offer a discount on the price of specific items when they are purchased at a store.
Q7) What is a brand?
Q9) How can brands benefit the consumer? Page 18
Q8) ___________________ is the ability of a potential customer to recognize or recall that the brand name is a type of retailer or product/service.
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Page 19