Retail Entrepreneurship
Test Preparation
Course Introduction
Retail Entrepreneurship explores the foundational principles and practical strategies required to launch and manage successful retail ventures. The course covers the entire lifecycle of retail enterprises, from identifying market opportunities and developing business plans to selecting products, designing store layouts, and managing daily operations. Students will learn about customer engagement, supply chain logistics, marketing tactics, inventory management, and the integration of technology in retail. Emphasis is placed on innovative retail formats, digital transformation, and adapting to evolving consumer preferences. Through case studies, project work, and real-world examples, students will develop the skills and mindset necessary to thrive as retail entrepreneurs in a competitive marketplace.
Recommended Textbook
Retail Management A Strategic Approach 13th Edition by Barry R. Berman
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20 Chapters
2240 Verified Questions
2240 Flashcards
Source URL: https://quizplus.com/study-set/2319
Page 2
Chapter 1: An Introduction to Retailing
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The first stage in development of a retail strategy should be to ________.
A) develop an overall long-run plan
B) decide on the appropriate target market
C) determine the type of business and specific orientation of the firm
D) implement an integrated strategy
Answer: C
Q2) A retailer collects an assortment of goods and services from various sources,buys in large quantities,and sells in small amounts to final consumers.This is referred to as
A) one-stop shopping
B) the retail concept
C) retail transactional efficiency
D) the sorting process
Answer: D
Q3) Channel cooperation and control is greatest when ________.
A) intensive distribution is utilized
B) selective distribution is utilized
C) exclusive distribution is utilized
D) manufacturers own and operate their own retailing facilities
Answer: D
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Chapter 2: Building and Sustaining Relationships in Retailing
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) A customer must pay his/her full bill when it is due in a(n)________.
A) debit account
B) open credit account
C) revolving credit account
D) option credit account
Answer: B
Q2) Inseparability for a service provider affects which element of a retail strategy?
A) the setting of a price
B) advertising the firm in a distinctive manner
C) accommodating demand in peak periods
D) the establishment of branch units
Answer: D
Q3) A retailer concerned with relationship retailing should concern itself with attracting and keeping new customers.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Strategic Planning in Retailing
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) A retailer attempting to improve its efficiency from 40 to 50 percent reduced its operating expense budget from $600,000 to $500,000.However,its new efficiency remained at 40 percent.What happened?
A) Sales decreased from $1,000,000 to $800,000.
B) Sales decreased from $1,000,000 to $833,333.
C) Sales decreased from $1,000,000 to $900,000.
D) Sales increased from $1,000,000 to $1,200,000.
Answer: B
Q2) A major disadvantage of buying an established business versus starting a new business is ________.
A) less flexibility in enacting a strategy tailored to the new owner
B) having a time lag until the business is ready to open
C) developing an inventory of goods
D) the existence of financing from the seller
Answer: A
Q3) In retailing,market share is usually an objective for only small retailers or independents.
A)True
B)False
Answer: False
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Chapter 4: Retail Institutions by Ownership
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) An important problem for small,family-run independent retail businesses is the limited time and resources devoted to long-run planning.
A)True
B)False
Q2) Specialization of personnel by functional area and/or geographic region is most likely to occur in what type of retail institution?
A) independent
B) chain
C) leased department
D) consumer cooperative
Q3) The high bargaining power of chains can be directly constrained by independents through ________.
A) using decentralized purchasing
B) refusing to purchase popular brands purchased by chains
C) threatening Robinson-Patman Act violations to suppliers
D) developing manufacturer brands
Q4) Approximately 70 percent of all retail stores are operated by independents.
A)True
B)False
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Chapter 5: Retail Institutions by Store-Based Strategy Mix
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) A retailer that believes that a retail life cycle resembles a fad should use ________.
A) rationalized retailing
B) positioned retailing
C) a cost-containment approach
D) mass merchandising
Q2) The retail life cycle stage characterized by market saturation is ________.
A) introduction
B) growth
C) maturity
D) decline
Q3) The wheel of retailing suggests that ________.
A) consumers desire customer service over price
B) established retailers should be cautious in changing their strategy from low end to high end
C) retail consumers are store loyal
D) retailers that move up the wheel typically can keep their price-conscious customers
Q4) How can a traditional department store compete against a membership club and a flea market?
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Chapter 6: Web, nonstore-Based, and Other Forms of Nontraditional Retailing
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The most valuable asset of a highly profitable direct marketer is generally its
A) owned mailing lists
B) rented mailing lists
C) employees
D) inventory
Q2) The promotional strategy of most infomercials ________.
A) stresses presold merchandise
B) stresses infomercials
C) encourages consumers to act immediately; otherwise, they have to wait for a special to be repeated
D) utilizes network programming
Q3) A typical response rate for a direct marketer is ________.
A) very low
B) moderate
C) high
D) very high
Q4) Why are direct selling and conventional vending machines not generally considered part of direct marketing?
Q5) Differentiate between the Internet and the World Wide Web.
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Chapter 7: Identifying and Understanding Consumers
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112 Verified Questions
112 Flashcards
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Sample
Questions
Q1) Trading areas reflect the distance shoppers will customarily travel to visit a retail store.Which type of shopper is most likely to travel great distances to shop at a given retailer?
A) agreeable shopper
B) outshopper
C) value shopper
D) top-of-the-line shopper
Q2) Cognitive dissonance results from doubt that the correct decision has been made. A)True
B)False
Q3) To reduce potential cognitive dissonance,a retailer should ________.
A) offer consumers money-back guarantee privileges
B) train salespeople to overstate a product's relative attributes in their sales presentation
C) price each service as a separate component; this allows consumers to pay for only the services they desire
D) pay careful attention to store atmosphere
Q4) Contrast the study of consumer behavior from the perspective of consumer demographics and consumer lifestyles.
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9
Chapter 8: Information Gathering and Processing in Retailing
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The difference between regular reports and exception reports is based on ________.
A) length
B) the handling of deviations from expected performance
C) cost
D) types of accounts covered
Q2) A small movie theater plans to build a coffee and snack bar that features espresso based on the success of a much larger competitor that features six screens.This strategy represents ________.
A) systematic research
B) nonsystematic research
C) a retail information system
D) single-source data
Q3) Data that have already been gathered for purposes other than the problem or issue under study are ________.
A) secondary data
B) primary data
C) marketing research data
D) marketing information systems data
Page 10
Q4) Develop a semantic differential scale to determine Starbuck's retail image.
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Chapter 9: Trading-Area Analysis
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) What type of retailer has a very large primary trading area?
A) impulse retailer
B) convenience retailer
C) destination retailer
D) parasite store
Q2) Leases in good shopping center locations are generally for 5 years or less.
A)True
B)False
Q3) A retailer's outshoppers come from its ________.
A) fringe trading area
B) secondary trading area
C) primary trading area
D) satellite trading area
Q4) "A grouping of stores may actually increase the trading area for each store." This statement especially applies to ________.
A) convenience products
B) emergency products
C) impulse products
D) shopping products
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Chapter 10: Site Selection
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) a."Often,the retailers that are attracted to an isolated location are those that are least suitable for this location form." Explain this statement.
b.What trade-offs should a retailer evaluate in considering an isolated store location? Explain.
Q2) Which location type is generally characterized by the absence of retailers with which the retailer can share traffic?
A) business district
B) shopping center
C) isolated store
D) strip
Q3) In evaluating a location in a regional shopping center,pedestrian traffic counts should be taken on the same time of day,day of week,and location.
A)True B)False
Q4) A net lease is typically used in conjunction with a straight or percentage lease. A)True B)False
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Chapter 11: Retail Organization and Human Resource Management
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) Which form of retail store organization seeks to achieve the benefits of both centralization and decentralization?
A) modern version of the Mazur plan
B) separate store
C) equal store
D) main store control
Q2) The modern version of the Mazur plan is a geographic method of classifying jobs.
A)True
B)False
Q3) The retailer most likely to have a tall organization is a ________.
A) small independent retailer
B) centralized retailer
C) decentralized retailer
D) main store control-format retailer
Q4) Which employee compensation plan has no fixed-cost component?
A) straight commission plan
B) straight salary plan
C) salary plus commission plan
D) compensation cafeteria
Page 13
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Chapter 12: Operations Management: Financial Dimensions
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) A retailer can best measure its liquidity by evaluating its ________.
A) collection period
B) return on net sales ratio
C) accounts payable to net sales ratio
D) quick ratio
Q2) A retail asset is ________.
A) the net worth of a retailer as reflected on a balance sheet
B) an item that is either cash or can be easily converted to cash
C) an item that a retailer owns that has a monetary value
D) the value of items the retailer owns less retail liabilities on these items
Q3) A retailer has a collection period of 37 days.Its net sales equal $1,000,000.Its accounts receivable equals ________.
A) $27,027
B) $36,000
C) $101,370
D) The answer cannot be determined from the information provided.
Q4) A firm's collection period needs to be evaluated on the basis of its percent of credit sales.
A)True
B)False
Page 14
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Chapter 13: Operations Management: Operational Dimensions
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) A retailer with high seasonality can best reduce its labor costs in the peak season through ________.
A) job standardization
B) carefully screening employees
C) developing employee performance standards
D) cross-training and developing self-service options for consumers
Q2) The need for store personnel in a season,week,day,and time period is ascertained through ________.
A) job standardization
B) workload forecasts
C) cross-training
D) time-based performance adjustments
Q3) In a debit-card system,the ________.
A) retailer still has the risk of customer nonpayment
B) purchase price is immediately deducted from a consumer's bank account and then entered into the retailer's account
C) customer can either pay the full amount due immediately or defer payment
D) customer is not billed until his or her billing cycle date
Q4) What are the advantages and disadvantages of rationalized retailing programs?
Page 15
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Chapter 14: Developing Merchandise Plans
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112 Flashcards
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Sample Questions
Q1) A retailer primarily appeals to the lowest income consumers and laggards in which stage of the product life cycle?
A) introduction
B) growth
C) maturity
D) decline
Q2) A retailer can purchase a national brand of canned corn for $.39.The canned corn sells for $.52.Total direct retailing costs for the corn (warehouse costs and direct labor)equal $.03 per can.In addition,$.05 per can is charged for administrative overhead.What is the direct product profitability per can?
A) $.05
B) $.10
C) $.13
D) The answer cannot be determined from the information provided.
Q3) Most goods and services are at what stage of the traditional product life cycle?
A) introduction
B) growth
C) decline
D) maturity
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Page 16
Chapter 15: Implementing Merchandise Plans
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) Data from want books,want slips,and competition shopping reports should be stored and accessed in a retail information system.
A)True
B)False
Q2) Describe the pros and cons to a retailer's using an outside,regularly used supplier as a merchandise source?
Q3) Describe the benefits and disadvantages associated with the use of centralized versus decentralized warehouses.
Q4) The use of collaborative planning,forecasting,and replenishment (CPFR)is generally associated with outside,new suppliers.
A)True
B)False
Q5) Customer requests for unstocked or out-of-stock merchandise are recorded in a(n)________.
A) generic product file
B) OCR-A system
C) UPC system
D) want book (want slip)
Q6) Develop a 10-item store security checklist aimed at reducing customer theft.
Page 17
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Chapter 16: Financial Merchandise Management
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The Universal Product Code (UPC)and scanning are important aspects of a ________ system.
A) manual system
B) POS perpetual inventory system
C) visual inspection
D) stock-counting
Q2) Describe how a retailer should engage in reduction planning.Discuss each reduction source in your analysis.
Q3) A retailer's average monthly sales are $90,000.If January's monthly sales index equals 115,January's sales are $103,500.
A)True
B)False
Q4) The adjusted ending retail book value multiplied by the cost complement equals the ending inventory value at cost.
A)True
B)False
Q5) Stock shortages may be due to bookkeeping errors such as unrecorded markdowns. A)True
B)False
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Chapter 17: Pricing in Retailing
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112 Flashcards
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Sample Questions
Q1) Price elasticity is ________ when the urgency for a purchase is low and the number of acceptable substitutes is high.
A) inelastic
B) elastic
C) unitary
D) positive
Q2) The most widely practiced retail pricing technique is ________.
A) cost-oriented pricing
B) prestige pricing
C) competition-oriented pricing
D) demand-oriented pricing
Q3) In predatory pricing,large retailers attempt to destroy smaller retailers by
A) vertical integration
B) conspiring with manufacturers to refuse to sell to smaller retailers
C) selling goods at very low prices (sometimes even below cost)
D) providing free warranties with selected goods
Q4) What factors account for the popularity of markup pricing in retailing? Explain your answer.
Q5) Explain how markup pricing can include a demand and a cost component.
Page 19
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Chapter 18: Establishing and Maintaining a Retail Image
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Sample Questions
Q1) Most retailers devote the largest proportion of their total space to merchandise space.
A)True
B)False
Q2) A co-branding program,such as a Starbucks in a Barnes & Noble store,most closely resembles ________.
A) an administered marketing arrangement
B) vertical integration
C) a leased department
D) a franchise arrangement
Q3) A curtain of warm or cold air is used in a(n)________.
A) self-opening entrance
B) climate-controlled entrance
C) revolving door entrance
D) electronic gate entrance
Q4) Develop an experiential merchandising program for a clothing store catering to college students.
Q5) Develop a plan to reduce the number of Web-based shoppers who enter the checkout,but who do not purchase anything.
Page 20
Q6) Develop a solutions selling program for a regional supermarket chain.
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Chapter 19: Promotional Strategy
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112 Flashcards
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Sample Questions
Q1) The most appropriate promotional schedule for a pioneer ad is ________.
A) peaked advertising
B) the hierarchy-of-effects schedule
C) massed promotion effort
D) distributed advertising effort
Q2) A major difference between advertising and publicity is based upon ________.
A) media used
B) media payment
C) message flexibility
D) message type
Q3) If advertising and personal selling are classified as marketer-dominated,then public relations is classified as ________-dominated.
A) media
B) consumer
C) government
D) trade association
Q4) Institutional advertising seeks to increase a retailer's short-run sales.
A)True
B)False
Q5) How can a retailer determine the effectiveness of its public relations program?
Page 21
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Chapter 20: Integrating and Controlling the Retail Strategy
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112 Flashcards
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Sample Questions
Q1) Outside auditors are ________.
A) internal personnel who specialize in conducting retail audits
B) internal employees who have other responsibilities but may be asked to participate in the retail audit
C) people who work as consultants on a fee basis
D) employees of an accounting firm
Q2) The use of low,moderate,and high interest rates as variables in a retail plan for a major appliance retailer illustrates ________.
A) gap analysis
B) benchmarking
C) strategic planning
D) scenario analysis
Q3) The study of "best practices" in retailing is an example of ________.
A) benchmarking
B) scenario analysis
C) gap analysis
D) variance analysis
Q4) Discuss the relationship of the sales opportunity grid to slotting allowances and direct product profitability.
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