Multiple choice questions:
1 . Identify the incorrect statement about e-tailing.
a. It enables consumers to shop when they like and from where they like.
b. It provides access to vast amounts of information, ranging from a product's attributes to who has the lowest price.
c. Many e-tailers offer personalized help online.
d. With some Internet websites, individuals can band together for group buying.
e. Some e-tailers may have to discontinue some product categories as consumers engage in outshopping.
2. . The dominance of Walmart can be attributed to Sam Walton's realization that:
a. most of any product's cost gets added after the item is produced.
b. consumers desire great selection and are willing to pay higher prices to obtain that selection.
c. most consumers prefer to complete all of their shopping in one store to minimize their overall shopping time.
d. most consumers would prefer to shop in large stores rather than small stores as they believe that larger stores offer higher customer service.
e. the company's primary focus should be on its profits.
3. _____ is the result of the pressure being placed on many retailers to increase profits by carrying additional merchandise or services that will also increase store traffic.
a. Cross-merchandising
b. Piggybacking
c. Automatic merchandising
d. Product diversification
e. Scrambled merchandising
4. Which of the following would NOT be considered a "category killer?"
a. Office Depot
b. PetSmart
c. Toys "R" Us
d. Target
e. Best Buy
5. Which of the following statements about private label brands is false?
a. Private labels allow the retailer to control the costs associated with developing, making, sourcing, and promoting the label.
b. Private labels are advertised in the newspaper as brands and are heavily promoted in stores.
c. Private label brands are usually sold at lower prices than manufacturer's brands.
d. Private label brands have been successful in the grocery industry, while failing in most other retail sectors.
e. Some retailers can't use private labels unless they are part of a buying group.
6. Strategic planning:
a. requires a short-term commitment of resources by the retailer.
b. is concerned with maximizing the efficiency of the retailer's use of resources and with how the retailer converts these resources into sales and profits.
c. involves managing the buying and handling of merchandise, pricing, advertising and promotion, customer services and selling, and facilities.
d. is concerned with how the retailer responds to the environment in an effort to establish a short-term course of action.
e. involves adapting the resources of the firm to the opportunities and threats of an ever-changing retail environment.
7. Which of the following would be an example of a market performance objective for Record World?
a. Open or acquire five to ten stores over the next year.
b. Increase this year's net profit margin by 3 percent over last year.
c. Improve public relations with customers by holding two major in-store events per six-month season.
d. Increase labor productivity by 12 percent over the next six months.
e. Increase return on assets from 12 percent to 15 percent over the next 12 months.
8. A retail firm that is setting goals based on its desire to help society fulfill some of its needs is developing _____ objectives.
a. personal
b. self-respect
c. financial benefit
d. self-esteem
e. societal
9. When a retailer is attempting to determine its major advantage(s) over competitors, it is analyzing its:
a. strengths.
b. weaknesses.
c. opportunities.
d. threats.
e. operations.
10. The aim of operations management is to:
a. heighten customer service.
b. advance the merchandise mix.
c. maximize the performance of current operations.
d. develop more effective long-term plans.
e. increase a product's perceived value to the customer.
11. The easiest way for a retailer to differentiate itself in the eyes of consumers is to:
a. satisfy the customer's needs and wants better than the competition.
b. use a unique name.
c. use market segmentation to break up America's homogeneous markets into more heterogeneous population bases.
d. offer no "transaction" services.
e. sell below cost.
12. Shoppers who like low prices and cannot afford much more belong to which general market segment as classified by Walmart?
a. Conscientious objectors
b. Price-sensitive affluents
c. Brand aspirationals
d. Value-price shoppers
e. One-stop shoppers
13. Identify the correct statement about "echo boomers."
a. They tend to rely on others for their success.
b. They want a family and home but place a higher priority on their professional career.
c. This age group is a declining percentage of the population.
d. Their behavior is the result of their growing up during the years leading up to and following the end of the Cold War.
e. They were the first to grow up with the Internet in its developed form.
14. Which of the following statements applies to members of the college-educated market?
a. They are especially watchful of price, quality, and advertised claims.
b. The size of this group is expected to undergo a substantial decrease in the next decade.
c. They are less sophisticated, discriminating and more dependent than other consumers of their age and income level, when making retail purchases.
d. With the advent of the Internet, they will have no need for in-store salespeople.
e. Their buying behaviors do not differ from those of other consumers of their same age who are not college educated.
15. Identify the correct statement about extended problem solving.
a. It occurs when the consumer recognizes that a problem exists yet does not have a strong preference for either the brand or the store.
b. The consumer has a strong preference for the brand to buy and the retailer from which to purchase it.
c. It typically involves infrequently purchased expensive products of high risk.
d. The consumer may not have a store choice in mind but may have a strong preference for the brand to purchase.
e. The consumer relies on past experience and learning to convert the problem into a situation requiring less thought.
16. Which element of the store's environment is concerned with the store's exterior design, ambience, and lighting.
a. Merchandising
b. Productivity
c. Store design
d. Store planning
e. Visual communications
17. The first decision the retailer must make in planning a store is:
a. deciding what graphics to use.
b. how to allocate the store's space.
c. deciding what type of fixtures to use.
d. deciding what type of lighting to use.
e. designing the logo.
18. The term "floor plan" in retailing refers to:
a. the process of deciding what price zones should be placed next to each other.
b. planning budgets, promotions, and specific activities for each department over a given period of time.
c. the activities associated with the planning of store lighting, designs, colors, and other elements of the store environment.
d. where merchandise and customer service departments are located, how customers circulate through the store, and how much space is dedicated to each department.
e. planning merchandise mixes, prices, and inventory for each department in a store.
19. The first step when developing a floor plan is:
a. deciding what price should be used.
b. analyzing how the available store space should be allocated to various departments.
c. determining how customers circulate through the store after entering through every possible entrance.
d. determining where shoplifting is most likely to occur.
e. deciding where to put the nonselling areas.
20. The four basic types of layout that retailers use today are:
a. spine, cluster, loop, and partition.
b. free flow, cluster, partition, and grid.
c. cluster, free flow, loop, and spine.
d. free flow, grid, loop, and spine.
e. cluster, loop, spine, and partition.