Retailing Principles
Exam Answer Key
Course Introduction
Retailing Principles introduces students to the foundational concepts and strategies involved in the retail industry. The course covers the full retail management process, including site selection, store layout, merchandising, pricing, customer service, and the use of technology in retail environments. Emphasis is placed on analyzing consumer behavior, understanding the dynamics of competition, and developing effective marketing and promotional strategies tailored for physical and digital retail settings. Through real-world case studies and practical projects, students will gain insights into the challenges and opportunities faced by retailers in today's globalized market.
Recommended Textbook
Retail Management 8th Edition by
Michael Levy Barton A. Weitz
Available Study Resources on Quizplus
18 Chapters
1656 Verified Questions
1656 Flashcards
Source URL: https://quizplus.com/study-set/2771
Page 2
Chapter 1: Introduction to the World of Retailing
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/55246
Sample Questions
Q1) Why is it imperative that manufacturers like HP and Procter and Gamble understand how retailers operate?
A)Manufacturers will be able to sell directly on-line.
B)Manufacturers will understand how to get their products on the shelves and sold to the customer.
C)Manufacturers can better sell merchandise without retailers.
D)Retailers can expect fewer buyouts to occur.
E)Manufacturers can limit multi-channel integration.
Answer: B
Q2) When Austin saw pastries and coffee being sold at his local bookstore,he knew it was an example of _________,which is the juxtaposition of unrelated merchandise in the store.
A)scrambled merchandising
B)intratype competition
C)product diversification
D)channel conflict
E)vertical differentiation
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Types of Retailers
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/55245
Sample Questions
Q1) Because the only merchandise categories at the University Futon Shop are double-sized futons,the Futon Shop can be said to have no ______________.
A)inventory control
B)need for customer service
C)variety
D)shrinkage
E)product depth
Answer: C
Q2) What do Delta,Marriott,and Century 21 have in common?
A)These retailers have established long-term relationships with their manufacturers.
B)They are all examples of off-price retailers.
C)They are all examples of service retailers.
D)They sell tangible products.
E)They have high operating margins due to the size of their inventories.
Answer: C
Q3) Discount stores offer both hard and soft goods for sale.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Multi-Channel Retailing
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/55244
Sample Questions
Q1) A party plan system:
A)is a form of direct-response advertising.
B)is based on the idea that social relationships influence buying habits.
C)may be illegal if it develops into a pyramid scheme.
D)uses a master distributor as lead salesperson.
E)is a recruiting tool for multilevel networks.
Answer: B
Q2) Browsing on the Internet channel and purchasing the merchandise at a store is the most common use of multiple channels during a shopping occurrence.
A)True
B)False
Answer: True
Q3) Explain multichannel retailers' impact on cannibalization and share of wallets.
Answer: By adding more sale outlets through offering an electronic channel,retailers may lead to some cannibalization,with which current store or catalog sales can be reduced by adding online channels.However,using an electronic channel synergistically with other channels may result in consumers making more total purchases from a single retailer.
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Customer Buying Behavior
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/181916
Sample Questions
Q1) Habitual decision making occurs when __________.
A)a decision process involved little or no conscious effort
B)a decision requires assistance from sales associates
C)customers have demands upon their time and wallets
D)retailers stimulate sales by suggesting complementary merchandise
Q2) While waiting in the check out line at Target,Autumn spotted a nail care kit displayed amongst the candy and batteries.She liked it,so she asked the cashier to add it to her bill.What kind of limited problem solving did Autumn engage in?
A)Extended problem solving
B)Frequent shopper loyalty
C)Impulse buying
D)Habitual decision making
E)Psychological problem solving
Q3) Which of the following items would most likely be purchased as an impulse item?
A)DVD player
B)marketing textbook
C)pair of Italian boots
D)chewing gum
E)waterford crystal vase
Q4) List five possible retail market segments for athletic shoes.
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Retail Market Strategy
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/55242
Sample Questions
Q1) Category killers and hypermarket retailers may be particularly suited to success internationally because of:
A)their ability to take advantage of increased consumer spending
B)their brands
C)their popularity in their host countries
D)their size
E)their operating efficiency
Q2) Why should a retailer be concerned with building a sustainable competitive advantage?
A)It could affect merchandise planning.
B)They should not as other retailers would just duplicate the efforts.
C)The competition's advantage will stimulate the retailer's market.
D)It is the final step in developing the retail strategy.
E)It could result in long-term profitability.
Q3) Customer loyalty means that customers are committed to buying merchandise from a retailer.
A)True
B)False
Q4) What are the steps in the strategic retail planning process?
Q5) How can a retailer use the market penetration opportunity to foster growth?
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Financial Strategy
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/55241
Sample Questions
Q1) The information used to analyze a firm's profit path comes from the A)balance sheet
B)profitability statement
C)income statement
D)strategic profit model
E)financial leverage statement
Q2) Operating expenses are costs incurred in the normal course of doing business to generate revenues.
A)True
B)False
Q3) 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 net profit of $30,000.
A)18.3 percent
B)8.2 percent
C)7.3 percent
D)25.0 percent
E)26.5 percent
Q4) Why would a buyer's performance be measured by gross margin and not net profit?
Q5) What are critical assets controlled by a store manager?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Retail Locations
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/55240
Sample Questions
Q1) Why would a small retailer NOT be interested in opening a mall kiosk?
A)Kiosks can be in prime locations.
B)A kiosk is relatively inexpensive compared to a regular sized store.
C)The high foot traffic can be helpful for testing the response to new products.
D)The retailer can offer seasonal merchandise then closes after the season.
E)The rent per square foot is very expensive.
Q2) Explain what is mixed use developments (MXDs)and how they appeal to consumers,retailers,local governments,and developers.
Q3) As Chelsea walked through the concourse to her connecting flight to Spain,she walked by a place selling CDs to learn a foreign language.Since she needed to brush up on her conversational Spanish,she talked with the person standing with the cart.The cart of merchandise would be described as a __________.
A)kiosk
B)parasite store
C)store within a store
D)timed leased agreement store
E)pop-up shop
Q4) What are the advantages and disadvantages of choosing a free-standing site for your retail store?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Retail Site Location
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/55239
Sample Questions
Q1) Why are grocery stores opening locations in urban neighborhoods that were once viewed as undesirable locations?
Q2) A retailer that is hard to get to,even if the customer can see it,has low
A)compatibility
B)accessibility
C)store congestion
D)cumulative attraction
E)interception
Q3) What are two main issues to consider when negotiating a store's lease?
Q4) Which of the following principles explains the success of a shopping center whose tenants include a Kohl's,a Walmart and Dick's Sporting Goods?
A)Multiple risk
B)Analog approach
C)Cumulative attraction
D)Consumer spotting
E)Diminishing adjacent
Q5) Describe what customer spotting is,its purpose and three approaches for obtain information by means of customer spotting.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Human Resource Management
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/55238
Sample Questions
Q1) Rebecca works at a regional department store.Due to her artistic skills,she is responsible for creating floor and window displays.This is all she does at the store.This is an example of:
A)Decentralization
B)Centralization
C)Narrow span of tasks
D)Specialization
E)Unity of tasks
Q2) Val is concerned that the commissioned salespeople in her fur shop are not keeping the store clean and merchandise properly displayed.What should she do?
A)Increase the sales commissions for her salespeople.
B)Change the incentives from commissions to bonuses.
C)Stock less merchandise.
D)Fire the salespeople and hire new ones.
E)Change the compensation to strictly an hourly wage.
Q3) Flextime is a job scheduling system that enables employees to choose the times they work.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Information Systems and Supply Chain Management
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/55237
Sample Questions
Q1) A pick ticket tells the DC what is being shipped.
A)True
B)False
Q2) To meet specific needs of a variety of customers,retailers must:
A)manage its supply chain to avoid stockouts
B)extending hours of operation
C)include only national brands
D)operating with more markdowns to make room for new merchandise
E)working closer with vendors to keep prices lower
Q3) For fashion merchandise where there is only one shipment of the product or collection,the best supply chain method to use is the ___________.
A)cross check logistic strategy
B)pull supply chain strategy
C)cost efficient logistic strategy
D)push supply chain strategy
E)influential logistic strategy
Q4) Identify and describe the vendor-managed inventory approach.
Q5) What is the bullwhip effect and what causes it?
Q7) Compare and contrast the push and pull supply chain methods. Page 12
Q6) What is the purpose of the data warehouse and how do retailers use it?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: Customer Relationship Management
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/55236
Sample Questions
Q1) Converting iron and gold customers into platinum customers is called customer alchemy.
A)True
B)False
Q2) Providing restrooms for customers is considered to be part of a retailer's customer relationship management.
A)True
B)False
Q3) An example of CRM being used at a retailer is _______.
A)frequent buyer cards
B)having shopping carts
C)providing parking
D)offering a coat and package check
E)evidence of friendly and helpful sales associates
Q4) What are the benefits of frequent shopper programs?
Q5) It is clear that CRM programs increase customer spending and loyalty.
A)True
B)False
Q6) What are four factors that limit the effectiveness of frequent shopping programs?
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Managing the Merchandise Planning Process
Available Study Resources on Quizplus for this Chatper
92 Verified Questions
92 Flashcards
Source URL: https://quizplus.com/quiz/55235
Sample Questions
Q1) Garden rakes,lawn mowers,and sunscreen would be considered part of a/an
A)expected merchandise category
B)sample merchandise category
C)staple merchandise category
D)seasonal merchandise category
E)fashion merchandise category
Q2) How can vendors be in a better position to manage a category than a retailer?
Q3) Certain advantages are inherent in rapid inventory turnover.List at least four of these advantages.
Q4) The highest classification level in the buying organization is called:
A)the category group
B)the buying group
C)the retail group
D)the merchandise group
E)the division group
Q5) How can having a high backup stock adversely affect a retailer?
Q6) Buyers are responsible for gross margin and operating expenses.
A)True
B)False
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Buying Merchandise
Available Study Resources on Quizplus for this Chatper
84 Verified Questions
84 Flashcards
Source URL: https://quizplus.com/quiz/55234
Sample Questions
Q1) Which of the following is a drawback for a retailer when offering national brands?
A)Retailers view national brands as a threat to private labels.
B)Retailers have to discount some national brands in order to attract customers to their stores because customers compare prices for these brands across stores.
C)Significant investment is needed to develop relationships with national brands' vendors.
D)Retailer has to work to market national brands to make them more well known and desired by customers.
Q2) Which of the following is NOT descriptive of a trade show?
A)Buyers meet with manufacturer executives to discuss strategies to grow their business.
B)Buyers review performance of the vendor during the previous season.
C)Vendors have celebrities at their booth to promote their merchandise and attract buyers.
D)The public is encouraged to attend and check out the new products that will soon be offered at retail.
E)Buyers see the latest products and styles being offered by vendors.
Q3) What are some of the costs associated with sourcing merchandise globally?
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 14: Retail Pricing
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/55233
Sample Questions
Q1) What are the limits of the rule-based approach of taking markdowns?
Q2) Because of markdowns,discounts to employees and customers,and merchandise reductions,______________.
A)the initial markup is usually higher than the maintained margin
B)the maintained markup is always less than the gross margin
C)there will be a shortage
D)the value of average inventory at cost is less than its receipt value
E)the initial markup is always lower than the maintained markup
Q3) Anne Marie made an effort to stop into the Walgreen's on her way home from work each Friday to pick up a gallon of milk since it was priced cheaper than her local grocery store.In this case,the milk is an example of Walgreens' use of ________.
A)stimulus pricing
B)leader pricing
C)follow-up pricing
D)price lining
E)odd pricing
Q4) How can working with vendors reduce the amount of markdowns?
Q5) Although many may initially disagree,why is Walmart legally not guilty of predatory pricing?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 15: Retail Communication Mix
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/55232
Sample Questions
Q1) What is brand image?
A)a set of associations usually organized around meaningful themes
B)the ability of a potential customer to recognize or recall a name of a retailer,product or service
C)anything linked to or connected with the name in a consumer's memory
D)when consumers indicate they know the brand name when presented to them
E)a distinguishing name or symbol that identifies the products offered by a seller
Q2) Which of the following is NOT a method used to determine a communication budget?
A)affordable budget method
B)huff gravity method
C)objective-and-task method
D)competitive parity method
E)percentage-of-sales method
Q3) Which of the following is a well-stated communication program objective?
A)Increase sales by 10% over 12 months.
B)Increase awareness in our target market.
C)Reduce customer complaints by 5%.
D)Increase brand awareness by 15% in the next 6 months.
E)Communicate our customer service commitment to our customers.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 16: Managing the Store
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/55231
Sample Questions
Q1) Angel's oldest associate Betty complained that she was bored and was thinking of looking for a different job.Instead of letting her go,Angel decided to utilize her life experience and asked Betty if she would be responsible for organizing departmental social events and the weekly visual displays.This suggestion,giving Betty a task she would enjoy doing,would be an example of ______.
A)intrinsic rewards
B)extrinsic rewards
C)job enrichment
D)compensation
Q2) The principal objective of employee socialization is to ________.
A)make the screening process faster
B)increase turnover
C)make on-the-job training unnecessary
D)orient new employees to the firm
E)prevent the creation of employee bonds
Q3) What is the difference between structured program training and on-the-job training?
Q4) Describe the difference between employee intrinsic and extrinsic rewards.
Q5) Name five ways an employer can seek new employees in a tight labor market.
Page 19
Q6) How are a job analysis and a job description different?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Store Layout, Design, and Visual Merchandising
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/55230
Sample Questions
Q1) Which of the following does NOT describe an end-cap?
A)They are display located at the end of an aisle.
B)They have high visibility.
C)Product sales increase dramatically when merchandise is featured on an end-cap.
D)Retailers use end caps to merchandise seasonal,temporary,or promotional items as well as high-margin items.
E)They are most often used with a free-form layout.
Q2) The term used to describe the practice of focusing spotlights on special feature areas and items is ___________.
A)popping the merchandise
B)creating a halo effect
C)attention focusing
D)illuminating the merchandise
E)spotlighting
Q3) When would an end cap be used and how is an end-cap an effective display?
Q4) What is the rational for locating the photo department at the back of a store?
Q5) The free-form layout is best suited for grocery stores.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 18: Customer Service
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/55229
Sample Questions
Q1) Dust free,clean,and organized stores with updated dressing rooms,are examples of a retailer's commitment to service through ________.
A)reliability
B)assurance
C)tangibility
D)expertise
E)responsiveness
Q2) Customer dissatisfaction is inevitable.What are the three steps a retailer should do for service recovery?
Q3) Retailers can reduce the knowledge gap by _______.
A)improving the communication between upper management
B)increasing interactions between store managers and corporate inventory planners
C)allowing customers to negotiate for the best price on products
D)interacting with customers through social media sites
E)developing better instrumental support to deliver the service desired by customers
Q4) What is the standards gap and how can retailers effectively decrease this gap?
Q5) How have kiosks been used at retailers to improve customer service?
To view all questions and flashcards with answers, click on the resource link above.
21