Store Management
1. Which of the following does not indicate conditions that lead to intense rivalry that adversely affect a
retailer who wants to enter the market?
A. High fixed costs
B. A large number of retailers with different sizes
C. A lack of perceived differences between competing retailers
D. Slow growth
2. What type of product will a consumer look for without regard to time, money, or effort?
A. Impulse product
B. Comparison product
C. Time-crunch product
D. Specialty product
3. Ian's job at the Nordstrom distribution center is to place some of the incoming apparel on hangers in size
order before rolling them down to be ticketed. Ian is preparing the merchandise to be
A. sorted and repacked for the conveyor.
B. cross-docked.
C. floor-ready.
D. ready for logistics.
4. The primary strategic objective of human resource management is to
A. introduce new services in order to obtain customer loyalty.
B. make sure the retailer abides by all state and federal laws.
C. align the capabilities and behaviors of employees with the goals of the retail firm.
D. decrease turnover.
5. Which benefits does efficient supply chain management provide retailers concerning product availability?
A. Reduced stockouts and employee productivity
B. Increased backup stock level and reduced stockouts
C. Increased stock level and tailored assortments
D. Reduced stockouts and tailored assortments
6. A retailer can work to retain employees and build a mutual commitment best by
A. treating employees all the same.
B. reducing its fixed costs.
C. empowering employees.
D. promoting the company.
7. Although retailers gain economies of scale from opening multiple locations in an area, they also suffer
diminishing returns associated with locating too many additional stores in an area. This is called
A. economies of scope.
B. channel integration.
C. channel competition.
D. sales cannibalization.
8. Which of the following describes the market expansion growth strategy?
A. Opening stores of the same retail format in new market segments.
B. Realizing growth by directing efforts toward existing customers using the retailer's present retailing format.
C. Keeping existing stores open for longer hours.
D. Displaying merchandise to increase impulse purchases and training salespeople to cross-sell.
9. Demarkus finally received financial backing from his wealthy aunt in order to open a pawn shop. He
contacted the landlord of a nearby shopping center since he had his eye on a vacant storefront. To his
surprise, his request for a lease was denied. What most likely prevented the landlord from leasing to
Demarkus?
A. A licensing clause
B. A fixed-rate clause
C. A prohibited use clause
D. An escape clause
10. For fashion merchandise where there is only one shipment of the product or collection, the best supply
chain method to use is the _______ strategy.
A. pull supply chain
B. push supply chain
C. cross check logistic
D. cost efficient logistic
11. What type of retailer would most likely benefit from the use of direct store delivery?
A. A big box electronics retailer
B. A big box discount store
C. A large department store
D. A supermarket
12. Which of the following ratios is included as an integral part of the strategic profit model?
A. Net profit margin
B. Current liabilities
C. Inventory turnover
D. Retained earnings
13. The information used to analyze a retailer's asset management path primarily comes from the
A. financial leverage statement
B. income statement
C. strategic profit model
D. balance sheet
14. Which of the following statements regarding the customer pyramid is true?
A. Customers in the Iron segment in the customer pyramid need special attention from the retailer to grow their potential to be
better customers.
B. Customers in the Gold segment are the most profitable and loyal customers.
C. Customers in the Lead segment may actually cost the retailer money to serve them.
D. All customers regardless of their segment must receive equitable promotional benefits.
15. How do retailers and vendors ensure that information that passes back and forth between retailers and
vendors is secure?
A. With a high level of planning, implementation and control of the flow of information, then the information will be secure.
B. The system ensures that the information received has not been tampered with by ensuring that the communication is both
authentic and authorized.
C. Paper hard copies are sent to one another for comparison to be certain that the information is accurate.
D. Suppliers, customers and new clients all have a form of access to information.
16. If Mohammed wanted to examine the assets and liabilities of the Silver Exchange Coin Shop for the
end of the year, he should look at its
A. profitability statement.
B. balance sheet.
C. financial leverage statements.
D. income statement.
17. Craig works for a retailer planning what merchandise will be in the assortments, setting prices,
negotiating with vendors and planning advertising and marketing for intimate apparel. He attends fashion
trade shows and travels to market in New York City nearly every month. What position in the
organizational structure of a retailing firm does Craig have?
A. Buyer
B. Merchandise planner
C. Store manager
D. Divisional merchandise manager
18. Why have some vendors and retailers chosen not to adopt RFID tagging?
A. They believe the additional costs do not benefit the return on investment.
B. They're concerned about the potential health risk of radio frequency.
End of exam
C. They're concerned about the data storage falling into the wrong hands.
D. They don't want to replace people with the devices.
19. Goodwill Industries frequently hires disabled people as part of the community thrift store personnel.
Which objective does Goodwill Industries value by this practice?
A. Personal
B. Societal
C. Financial
D. Administrative
20. Val is concerned that the commissioned salespeople in her fur shop aren't keeping the store clean and
merchandise properly displayed. What should she do?
A. Increase the sales commissions for her salespeople.
B. Stock less merchandise.
C. Fire the salespeople and hire new ones.
D. Change the incentives from commissions to bonuses.