Retail Management Test Preparation
Course Introduction
Retail Management explores the fundamental principles, strategies, and operations involved in running successful retail businesses. The course covers key topics such as store layout and design, merchandise planning, supply chain management, pricing strategies, customer relationship management, and the integration of technology in retail. Emphasis is placed on understanding consumer behavior, the impact of omni-channel retailing, and the transition from traditional brick-and-mortar stores to digital retail environments. Case studies and practical examples are used to illustrate effective retail practices and the challenges faced in a rapidly evolving marketplace.
Recommended Textbook Retailing Management 10th Edition by
Michael Levy
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17 Chapters
1498 Verified Questions
1498 Flashcards
Source URL: https://quizplus.com/study-set/627
Page 2
Chapter 1: Introduction to the World of Retailing
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Sample Questions
Q1) Which of the following statements is True of ethical principles?
A) Ethical principles can change over time.
B) Ethics remain the same irrespective of the country or industry.
C) Most people have common views on ethical and unethical practices.
D) The personal code of ethics does not play a role in business decisions.
E) Ethical principles are often easy to determine.
Answer: A
Q2) Tech Games, a retailer, purchases of the video games and game consoles on a large scale. It then offers the products to customers in single quantities. The value-creating function performed by Tech Games in the given scenario is
A) providing assortments.
B) breaking bulk.
C) holding inventory.
D) providing services.
E) creating a retail mix.
Answer: B
Q3) The retail sector plays a key role in developed economies.
A)True
B)False
Answer: True
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Chapter 2: Types of Retailers
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Sample Questions
Q1) Which of the following statements best defines a warehouse club?
A) They are stores that provide a large variety and assortment of merchandise at a convenient location with speedy checkout.
B) They are large, self-service retail food stores offering about 30,000 SKUs with high inventory holding costs.
C) They are retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise.
D) They are retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices.
E) They are large stores that combine a supermarket with a full-line discount store.
Answer: D
Q2) The most basic characteristic used to describe the different types of retailers is their retail mix, or the elements retailers use to satisfy their customers' needs.
A)True
B)False
Answer: True
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4
Chapter 3: Multichannel and Omnichannel Retailing
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57 Flashcards
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Sample Questions
Q1) How can multichannel and omnichannel retailers reduce showrooming?
Answer: Three approaches that multichannel and omnichannel retailers can use to reduce showrooming are (1) providing better customer service, (2) offering uniquely relevant information based on proprietary data the retailer has collected about the customers, and (3) promoting private-label merchandise that can be purchased only from the retailer.
Q2) Stores offer immediate gratification to customers.
A)True
B)False
Answer: True
Q3) M-commerce should be approached by retailers the same as e-commerce.
A)True
B)False Answer: False
Q4) The majority of retail transactions take place online.
A)True
B)False
Answer: False
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Chapter 4: Customer Buying Behavior
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124 Flashcards
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Sample Questions
Q1) A retailer in Lincoln, Nebraska, who wants to open a store that will sell surfboards and surfing accessories finds that the local market is very small. He would be able to serve a national market better by means of Internet marketing. Which factor for evaluating a market segment is seen in the given scenario?
A) Competition
B) Substantiality
C) Reachability
D) Actionability
E) Identifiability
Q2) Calvin enjoys dining at Dawson's, a fast food restaurant. He feels that they make the best French fries for a low price. However, when it comes to dessert, he feels he's a cake connoisseur. He prefers to have cake only at Marina's Patisserie, even though a piece of cake costs $7.00. Calvin's patronizing of Dawson's and Marina's demonstrates a behavior called
A) cross-shopping.
B) comparison shopping.
C) composite segmentation.
D) cross-docking.
E) postpurchase satisfaction.
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Page 6
Chapter 5: Retail Market Strategy
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124 Flashcards
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Sample Questions
Q1) Which of the following retail growth strategies has the greatest chance for succeeding?
A) Related diversification growth opportunity
B) Market penetration growth opportunity
C) Market expansion growth opportunity
D) Retail format development growth opportunity
E) Unrelated diversification growth opportunity
Q2) List the key opportunities for success in global retailing.
Q3) A toy store has acquired an edge over its competition that cannot be easily copied by its competitors. Which of the following has the store achieved?
A) Customer brand affiliation
B) Sustainable competitive advantage
C) Customer loyalty
D) Service excellence
E) Brand recall
Q4) The first step in the strategic retail planning process is to define the business mission.
A)True
B)False
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Chapter 6: Financial Strategy
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Sample Questions
Q1) When Erica calculates the current assets for her picture framing business, she should not include which of the following?
A) Her accounts payable
B) The money in her cash register
C) Office supplies
D) Her accounts receivable
E) The store's inventory of matting
Q2) Calculate the return on assets for a gun shop that has total assets of $410,000, current assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, net sales of $64,000, and operating profit margin of $30,000.
A) 18.3 percent
B) 8.2 percent
C) 7.3 percent
D) 25.0 percent
E) 26.5 percent
Q3) What is same-store sales growth and how retailers use it?
Q4) Identify and describe the three types of objectives retailers might have in the strategic planning process.
Q5) What are the critical assets controlled by a store manager?
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Chapter 7: Retail Locations
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Sample Questions
Q1) Water Tower Place on Michigan Avenue in Chicago has many high-quality boutiques, amongst office space and residential condominiums. It is an example of a(n)
A) lifestyle center.
B) mixed-use development.
C) outlet center.
D) off-price center.
E) price-oriented center.
Q2) Lowe's and Best Buy would most likely be found in a ________ shopping center.
A) power
B) regional or super regional
C) strip
D) theme/festival
E) central-business
Q3) Building codes are legal restrictions that specify the type of building, signs, size and type of parking lot, and so forth that can be used at a particular location.
A)True
B)False
Q4) What are the advantages and disadvantages of strip shopping centers?
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Page 9
Chapter 8: Retail Site Location
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Sample Questions
Q1) A store that is easy for potential customers to see has high A) compatibility.
B) accessibility.
C) store congestion.
D) cumulative attraction.
E) visibility.
Q2) In terms of trade areas, the owner of Bubba's Bar and Grille defines his ________ as the geographic area in which 70 percent of his customers live.
A) primary trading area
B) fundamental market
C) geographic market
D) secondary trading area
E) tertiary trading area
Q3) Where can retailers obtain information about the nature of consumers in a trade area?
Q4) Compare and contrast when it is essential for a retailer to have good visibility and accessibility, and in which cases these attributes are less important.
Q5) List out and define the different terms of leases.
Q6) Mention the factors affecting the size of the trade area.
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Chapter 9: Information Systems and Supply Chain Management
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Sample Questions
Q1) A retailer whose orders are generated at the store level on the basis of sales data captured by point-of-sale terminals is said to employ a(n):
A) cost efficient logistic strategy.
B) pull supply chain.
C) influential logistic strategy.
D) cross check logistic strategy.
E) push supply chain.
Q2) Ali supervises the conveyor belts in a distribution center. Her job is to make sure the merchandise moves quickly from the receiving docks to the staging area in order for the trucks to load and deliver. No merchandise is stored, as the vendors already prepared it specifically for the stores. Ali handles ________ at the distribution center.
A) ticketing
B) cross-docking
C) cataloging
D) marking
E) reverse logistics
Q3) Describe what a "backhaul" is and why companies would utilize backhauls.
Q4) Identify and describe the vendor-managed inventory approach.
Page 11
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Chapter 10: Customer Relationship Management
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) Retailers will use all of the following to retain and increase share of wallet from their best customers except:
A) Frequent-shopper programs
B) Special customer services
C) Personalization
D) Promotions
E) Lower prices
Q2) Which of the following statements is not True of frequent-shopper programs?
A) Frequent-shopper programs are programs that identify and provide rewards to customers who patronize a retailer.
B) Frequent-shopper programs are also commonly called loyalty programs.
C) Frequent-shopper cards are issued on the basis of market basket analysis.
D) Frequent-shopper programs include a private-label credit card offered by a retailer.
E) Frequent-shopper programs can provide customer information automatically to the retailer when customers have their program card scanned at the time of transaction.
Q3) What are the four factors that limit the effectiveness of frequent-shopping programs?
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12
Chapter 11: Managing the Merchandise Planning Process
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92 Flashcards
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Sample Questions
Q1) Which of the following is not True of category management?
A) Managing merchandise within a category by brand can lead to inefficiencies because it fails to consider the interdependencies between SKUs in the category.
B) The category management approach to managing breakfast cereals in supermarkets should have one buyer or category manager who oversees all merchandising activities for the entire category.
C) A category manager ensures that the store's assortment includes the "best" combination of sizes and vendors.
D) A category manager chooses vendors that will get the most profit from the allocated space.
E) A category manager is also called a category captain and works with vendors to get the most profit from collaborative relationships.
Q2) Which of the following is not a benefit of a high inventory turnover?
A) Continuous availability of new merchandise
B) Improved salesperson morale
C) Reduced obsolescence risk and markdowns
D) New buying opportunities
E) Reduced gross margin
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Chapter 12: Buying Merchandise
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Sample Questions
Q1) A ________ for retail buyers is a concentration of vendors within a specific geographic location, perhaps even under one roof or over the Internet.
A) distribution center
B) wholesale market
C) gray market
D) black market
E) resident buying office
Q2) National brands are also called
A) generic brands.
B) private-label brands.
C) exclusive brands.
D) manufacturer's brands.
E) distributor's brands.
Q3) All of the following are terms for products developed by retailers except A) store brands.
B) private-label brands.
C) house brands.
D) own brands.
E) manufacturer's brands.
Q4) What are some of the benefits of offering store brands?
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Chapter 13: Retail Pricing
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Sample Questions
Q1) ________ is the actual sales realized for the merchandise minus its costs of the merchandise sold.
A) Total profit
B) Net profit margin
C) Fixed price
D) Maintained markup
E) Initial markup
Q2) Jenny runs a produce stand in an inner-city neighborhood. With the recent layoffs, she has become popular because she gives her day-old produce to the local charity. Which of the following benefits does Jenny gain by donating produce to the local charity?
A) It requires extra record keeping and transportation costs.
B) It offers her strong public relations benefits.
C) She needs to allocate separate space for her clearance merchandise.
D) She can recover a small percentage of the merchandise's cost.
E) The keystone price can be deducted from her income.
Q3) Generally, as the price of a product increases, sales for the product will increase.
A)True
B)False
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Page 15
Chapter 14: Retail Communication Mix
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Sample Questions
Q1) In a national print advertisement, Levi's was showcasing its new line of denim jackets. At the bottom of the ad, the Macy's logo was found as a place where the new jackets could be purchased by customers. This is an example of
A) co-op advertising.
B) partnering promotions.
C) a double truck.
D) a double pocket promotion.
E) a spot promotion.
Q2) The ________ method assumes that communication expenses are just a cost of business and do not promote sales and profit.
A) affordable budgeting
B) objective-and-task
C) percentage-of-sales
D) competitive parity
E) marginal analysis
Q3) Marketers can use search engine marketing to improve the visibility of their websites in customers' searches online.
A)True
B)False
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Page 16
Chapter 15: Human Resources and Managing the Store
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Sample Questions
Q1) What are some of the major legal and regulatory issues in human resource management in the retail industry?
Q2) Which of the following is a disadvantage of incentive compensation plans?
A) Employees know that a rise in productivity will have no impact on their compensation.
B) Employees are taxed heavily on their income from incentive plans.
C) Employers are taxed heavily on their expenditure incurred through incentive plans.
D) Employees don't develop loyalty to their employers when incentive plans are practiced.
E) Employers are unable to increase employee productivity while following incentive plans.
Q3) Which of the following is the major disadvantage of a straight salary plan?
A) It is expensive to administer.
B) It increases a retailer's variable costs.
C) Many employees have trouble understanding a straight salary plan.
D) It makes it very difficult for a retailer to assign employees to activities.
E) It does not directly relate pay incentives to productivity.
Q4) Define organization structure.
Q5) Explain the differences between an autocratic leader and a democratic leader.
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Chapter 16: Store Layout, Design, and Visual Merchandising
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Sample Questions
Q1) Why is it important for stores to be designed with flexibility in mind?
A) It is less expensive for retailers to build several different types of flexible fixtures than to build one inflexible fixture.
B) Retailing is a dynamic business, and retailers need to keep changing the merchandise mix offered.
C) Customers find it hard to locate merchandise if fixtures are rigid.
D) Department managers never know what to expect from the planner's allocations and require the ability to display more merchandise at a moment's notice.
E) Environmental legalities require stores to have flexible designs to reduce waste.
Q2) A racetrack layout is also called a
A) loop layout.
B) fixture layout.
C) boutique layout.
D) gondola layout.
E) free-form layout.
Q3) How does smell impact customers' mood and emotions?
Q4) Explain the use of a gondola as a fixture.
Q5) How does flexibility become an important aspect when controlling costs?
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Chapter 17: Customer Service
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Sample Questions
Q1) Which of the following statements is True of customer service?
A) The retail offerings of a company are not influenced by customer service.
B) It is relatively easy for a company to duplicate the services offered by a competitor.
C) It does not provide major strategic advantages for a company.
D) It increases the value customers receive from the merchandise they buy.
E) Customer service perceptions are developed mostly by interacting with top management.
Q2) Karen ordered four books from Book Your Choice.com. She was informed that her order would be processed in two working days and she would receive the books three days from the date of ordering. The books were promptly delivered on the third day. Karen was immensely satisfied with the service provided by the website. Which customer service characteristic affecting perceptions of service quality is seen in the given scenario?
A) Instrumental support
B) Empathy
C) Tangibility
D) Reliability
E) Distributive fairness
Q3) What is the difference between personalized services and standardized services?
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Page 19