Retail Operations Test Bank
Course Introduction
Retail Operations examines the fundamental principles and practices involved in managing day-to-day activities within retail organizations. The course explores key topics such as store layout and design, inventory management, supply chain coordination, customer service, merchandising strategies, staff management, and the use of technology in retail settings. Emphasis is placed on understanding the operational challenges retailers face and developing analytical and problem-solving skills to enhance efficiency, productivity, and customer satisfaction 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
Chapter 1: Perspectives on Retailing
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16087
Sample Questions
Q1) _____ occurs when the customer gets needed information in the store and then orders it online for a lower price and to avoid paying state sales tax.
A) Channel Surfing
B) Same-store retailing
C) Bricks-and-mortar retailing
D) Social shopping
E) Outshopping
Answer: A
Q2) 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
Q3) Walmart became the world's largest retailer by focusing on its bottom line profits.
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) For a mission statement to be effective,it should:
A) be less than 10 words; after all, the more concise the mission statement, the more focused the company.
B) provide a basic description of the fundamental nature, rationale, and direction of the firm.
C) be changed annually to reflect changes in the environment.
D) follow the strategy laid out annually by senior management.
E) be developed only after the retailer sets its goals and objectives.
Answer: B
Q2) The Card Shoppe had a gross margin last year of $2,000,000 and a net profit of $300,000,while net sales were $2,500,000.What was The Card Shoppe's net profit margin for last year?
A) 12.0 percent
B) 15.0 percent
C) 20.0 percent
D) 68.0 percent
E) 80.0 percent
Answer: A
To view all questions and flashcards with answers, click on the resource link above. 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) When a consumer has a strong retailer preference and a strong brand preference he/she typically engages in habitual problem solving.
A)True
B)False
Answer: True
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
To view all questions and flashcards with answers, click on the resource link above. 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) Which of the following factors is NOT characteristic of a market experiencing pure competition?
A) Ease of entry into the market
B) Many buyers
C) Many sellers
D) Similar products
E) Differentiated products
Q2) Retailers have found private label branding strategies so successful that they are using private label brands for entire departments.
A)True
B)False
Q3) 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
Q4) Competition at the local level is often more complex than at the national or regional level.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
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) _____ occurs when the retailer trusts the supplier and the supplier trusts the retailer.
A) Solidarity
B) High dollar performance
C) Coercion
D) Mutual trust
E) Relationship marketing
Q2) In a conventional marketing channel,every member seeks to maximize its own performance,and has little or no concern for the overall performance of the total supply chain.
A)True
B)False
Q3) Selective distribution:
A) means that all possible retailers are used to reach the target market.
B) means only one retailer is used in the trading area.
C) means that a smaller number of retailers are used to reach the target market.
D) is associated with the distribution of convenience goods.
E) is identified with specialty goods.
Q4) Explain the key differences between a conventional marketing channel and a vertical marketing system.
To view all questions and flashcards with answers, click on the resource link above. Page 7
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) Entertainment City advertised,in its Christmas circular,a portable compact disc player on sale for $45.Sales clerks were informed that they were to attempt to persuade customers interested in the "on-sale" CD player to purchase the higher quality,$115 model.In addition,no commission will be paid on the lower priced CD player.Entertainment City is engaged in the practice of:
A) palming off.
B) legal advertising.
C) sale advertising.
D) puffery.
E) bait-and-switch advertising.
Q2) 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.
Q3) Nike engaged in dual distribution when it began:
A) to sell through its own retail outlets as well as independent retailers.
B) to sell to retailers competing with its existing retailers.
C) to encourage two different distributors to serve the same retailer.
D) to offer two different prices to retailers, based on volume purchased.
E) to produce private label brands for the retailers currently selling Nike shoes.
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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) Reilly's law is based on two assumptions,one of which is:
A) population is a good indicator of the differences in the goods and services available in different cities.
B) retail competitors are of equal size.
C) the two competing cities are unequally accessible from the major road.
D) smaller cities will attract shoppers from larger communities.
E) price fixing occurs between retailers.
Q2) A _____ business district usually consists of an unplanned shopping area around the geographic point at which all public transportation systems converge; it is usually in the center of the city and often where the city originated historically.
A) central
B) convenient
C) secondary
D) suburban
E) neighborhood
Q3) Service retailers,such as a plumbers or house painters,may not be concerned about the convenience of their locations.
A)True
B)False
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Page 9
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) Planned purchases at retail is equal to:
A) planned sales and planned reductions and BOM inventory minus planned EOM inventory.
B) planned sales and planned EOM inventory minus planned reductions and BOM inventory.
C) planned sales minus planned reductions, planned EOM inventory, and one-half BOM inventory.
D) planned sales, planned reductions, and planned EOM inventory minus BOM inventory.
E) planned sales plus planned reductions.
Q2) Gross margin is the difference between net sales and cost of goods sold or the amount available to cover operating expenses and produce a profit.
A)True
B)False
Q3) Stock-to-sales ratios always express inventory levels at retail,not cost.
A)True
B)False
Q4) Explain the components of the balance sheet.
Q5) Explain the steps involved in developing a six-month merchandise budget.
To view all questions and flashcards with answers, click on the resource link above. Page 10
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) Seasonal discounts are now illegal in the United States.
A)True
B)False
Q2) _____ refers to the number of merchandise brands that are found in a single merchandise line.
A) Choice
B) Variety
C) Assortment
D) Breadth
E) Depth
Q3) If the retailer has no purchase commitments for future delivery,then its OTB and planned purchases at retail should be equal.
A)True
B)False
Q4) An advantage of using a private label is that some manufacturers will not sell a product to certain retailers.
A)True
B)False
Q5) Explain the four different methods for planning dollars invested in merchandise.
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Chapter 10: Merchandise Pricing
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/16096
Sample Questions
Q1) A landlord charges the same apartment rent as last year,but now adds a fee for parking spaces.This practice is known as:
A) entrapment.
B) unbundling.
C) bait-and-switch pricing.
D) bundling.
E) high-low pricing.
Q2) The most common merchandise error is carrying over seasonal or fashion merchandise into the next merchandising season.
A)True
B)False
Q3) The practice of advertising a low-priced model of a shopping good to lure shoppers into a store is called a bait-and-switch pricing.
A)True
B)False
Q4) Retailers use multiple-unit pricing to encourage additional sales and to increase profits.
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) An owner of a restaurant decided that 5 percent of next year's projected sales will be spent on advertising.The owner is utilizing the _____ method in determining the restaurant's advertising budget.
A) percentage-of-sales
B) task-and-objective
C) approximation
D) parity
E) affordable
Q2) Regardless of the advertising objective chosen,it must be aimed at a specific market segment and must also be measurable over a given time period.
A)True
B)False
Q3) Your boss,the owner of a local apparel retailer,has asked you to select an appropriate media to use for her advertising campaign.Explain the media alternatives available for her retail store,including the advantages and disadvantages of each.What three goals should your creative retail ad campaign accomplish?
Q4) What are the four basic components of retail promotion? How are they related to the other elements of the retail mix?
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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 fast food restaurant is more likely to employ order takers than order getters.
A)True
B)False
Q2) Today's retailers can develop long-term relationships with their customers by offering financial and social benefits.
A)True
B)False
Q3) Which of the following is an example of a posttransaction service offered by retailers?
A) Information aids
B) Counseling lessons
C) Credit availability
D) Delivery
E) Layaway
Q4) The two most overlooked problems regarding transaction services are having clean restrooms and minimizing dwell time.
A)True
B)False
Q5) Explain the steps in the retail sales process.
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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) Institutional signage describes the merchandising mission and customer-service policies of the retailer.
A)True
B)False
Q2) All of the following are warning signs that a retailer has a space problem EXCEPT:
A) insufficient staging space for large shipments of advertised products.
B) open spaces on the selling floor, even if the product is on hand.
C) uncluttered and organized aisles, hallways and stockrooms.
D) sales lag expectations for specific locations where space or fixtures are a known issue.
E) off-site storage or multiple stockrooms required for a single commodity.
Q3) Small,expensive items are usually stocked in very high fixtures to discourage shoplifting.
A)True
B)False
Q4) When retailers speak of "store planning," they are referring to decisions related to the location of new stores.
A)True
B)False
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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) A retailer employing the mass merchandising formula can get trapped in an endless cycle of lower margins,frequent sales promotions,higher traffic,and higher efficiency.
A)True
B)False
Q2) During the "marketing to" era,communication was primarily broadcast on the one-to-many model.
A)True B)False
Q3) The new management mindset that retailers and businesses in general are moving toward is known as service-dominant.
A)True
B)False
Q4) Discuss and cite examples of what resources need to be reconfigured in order for a retailer to reframe its business.
Q5) The United Stated in 1900 was largely settled with the majority of people residing in cities.
A)True B)False
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