Multiple choice questions:
1. 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. balance sheet.
B. profitability statement.
C. financial leverage statements.
D. income statement.
2. 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. Store manager
B. Merchandise planner
C. Buyer
D. Divisional merchandise manager
3. How do retailers and vendors ensure that information that passes back and forth between retailers and vendors is secure?
A. Suppliers, customers and new clients all have a form of access to information.
B. Paper hard copies are sent to one another for comparison to be certain that the information is accurate.
C. With a high level of planning, implementation and control of the flow of information, then the information will be secure.
D. The system ensures that the information received has not been tampered with by ensuring that the communication is both authentic and authorized.
4. Schnuck's Grocery Store is located in St. Louis, Missouri. The owner has taken a map and has drawn three different sized shapes around the store's location. Those people that are located in only the largest shape being beyond a 15-minute drive radius of the store are in what's referred to as the store's
A. delineated market.
B. geographic market.
C. tertiary trading area.
D. market trading area.
5. Why are concerns about privacy heightened for customers who use the electronic channel while they
shop?
A. Electronic retailers ask for more information than necessary for a simple transaction.
B. Consumers are concerned as to how the information is shared.
C. Consumers are concerned about their credit card security.
D. Because a large amount of information can be collected without the consumer's knowledge.
6. Which of the following statements about the strategic profit model is false?
A. It illustrates the different approaches for achieving a high return on assets (ROA).
B. It is a method for summarizing the factors that affect a firm's financial performance.
C. It decomposes return on assets (ROA) into net profit and operating expenses.
D. It indicates the impacts of factors affecting a firm's return on assets (ROA).
7. Which of the following is supportive of customer loyalty?
A. It is the state of accumulated transactions that customers build through repeat purchases responding to various promotions to a retailer.
B. It is when customers purchase merchandise and services from the retailer because of their convenient location.
C. It is an emotional connection between a retailer and a customer.
D. It is customers making repeat visits to a retailer and being satisfied with their experiences.
8. You would most likely find a lifestyle center
A. in a small town.
B. in a low-income, rural community.
C. at an interstate interchange.
D. in a high-income neighborhood.
9. Which of the following statements describing the size of trade area is false?
A. Convenience stores' trade areas are relatively small.
B. A retailer like IKEA has large trade areas.
C. A retailer like Starbucks has a large trade area.
D. Category specialists have relatively large trade areas.
10. Why would a discount store have a lower gross margin percent than a jewelry store?
A. Jewelry stores cannot offer the variety that discount stores offers.
B. Discount stores traditionally do not profit as well as jewelry stores.
C. Discount stores are only beginning to explore gross margin in pricing decisions.
D. Discount stores have a lower priced merchandise strategy.
11. Which of the following correctly describes the practices which protect customer privacy?
A. Current legislation in the U.S. for consumer privacy forces strict protection of consumer privacy in retailing.
B. In the EU, the opt-out policy is applied when consumers' personal information is collected and used.
C. In the United States, Americans rely upon federal government to protect consumer privacy.
D. In the U.S., personal information is generally viewed as being in the public domain, and retailers can use it in any way they desire.
12. Which of the following does not describe a retailer's strategic advantage gained through the efficient
supply chain and information system?
A. All retailers can increase sales, and reduce costs, by using high performance information systems.
B. The competitive advantage from information and supply chain systems is easy to be duplicated by competitors.
C. The effective use of supply chain and information systems requires the coordinated effort of employees and functional areas throughout the company.
D. All retailers can develop a competitive advantage from their information and supply chain systems.
13. 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. Stock less merchandise.
B. Change the incentives from commissions to bonuses.
C. Increase the sales commissions for her salespeople.
D. Fire the salespeople and hire new ones.
14. Locations in a shopping center affect both sales and occupancy costs. Which of the following
statements describing the relationships is false?
A. A destination store, like a shoe repair store, should be located close to supermarket in a strip shopping center.
B. The more expensive locations are closest to the supermarket in a strip shopping center.
C. Shops, like a flower shop, which attract impulse buyers should be close to the supermarket in a strip shopping center.
D. Stores that cater to consumers engaging in comparison shopping are benefited from being located in more expensive locations near the department store anchors.
15. Which of the following statements is false?
A. It is important to examine an area's level and growth of population and employment and how long such growth will continue and how it will affect demand for merchandise sold in its stores.
B. The best areas for locating stores are those that generate the highest return on investment in the short term.
C. It is important to have the strategic fit of the areas' population with the retailer's target market.
D. It is important to consider local and state legal and regulatory environments affecting operating costs.
16. Which of the following is not a benefit of using RFID over traditional bar codes?
A. Reduced point of sale labor costs
B. Reduced inventory turn
C. Reduced warehouse and distribution labor costs
D. Reduced theft
17. When a regular customer calls a well-known pizza delivery restaurant, the order-taker types in the caller's name. The computer screen shows the customer's address, phone number, directions to his or her house, his or her usual order, and the date and frequency of orders. If the customer has not ordered during a two-month period, or the average number of orders has been down, then the pizza parlor mails them a coupon for their favorite pizza. The pizza parlor uses
A. a data warehouse.
B. retail information system.
C. direct marketing.
End of exam
D. customer data system.
18. Which of the following statements describing market penetration growth strategy is false?
A. It involves realizing growth by directing efforts toward existing customers using the retailer's present retailing format.
B. It involves using the existing retail format in new market segments.
C. It includes keeping existing stores open for longer hours.
D. It involves displaying merchandise to increase impulse purchases and training salespeople to cross-sell.
19. Which of the following is not considered a barrier to entry in a market for a retailer?
A. Market dominated by a few large competitors with scale economies
B. Market dominated by a well-established retailer that has developed a loyal group of customers
C. Market with many vendors
D. Market with no good locations
20. Which of the following statements about the Huff Gravity Model is false?
A. The formula indicates that the larger the size of the store compared with competing stores' sizes, the greater the probability that a customer will shop at the location.
B. The greater travel time or distance for the consumer, compared with that of competing locations, the higher probability that the consumer will shop at the location.
C. It predicts the probability of a customer going to a specific store location.
D. It is assumed that a larger size is generally more attractive in consumers' eyes because it means more merchandise assortment