Chapter 7
Chapter 8
Chapter 9 Category
Chapter 10
Chapter 11
100
Freestanding stores rely mostly on foot-traffic to bring in customers TRUE FALSE
FALSE
100
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. channel competition B. economies of scope C. sales cannibalization D. channel integration E. operating costs
C. sales cannibalization
100
is the result of hiring inexperienced, low-wage employees? A. Sales increase B. Better customer loyalty C. More extensive employee feedback D. Higher labor expenses E. High turnover
E. High turnover
100
Which of the following is NOT a benefit of efficient supply chain management? A. improved product availability B. fewer stockouts C. better fashions D. higher return on investments E. strategic advantage
C. better fashions
100
A specific type of data analysis that focuses on the composition of the bundle of merchandise purchased by a household during single shopping occasion is called a market basket analysis. TRUE OR FALSE
True
200
The anchor stores in a shopping mall are traditionally: A. department stores B. stand alone stores C. specialty shops D. discount stores E. category killers
A. department stores
200
The grouped location approach is based on the principle of _______, which states that a cluster of similar and complementary retailing activities will generally have greater drawing power than isolated stores that engage in the same retailing activities. A. multiple risk B. analog approach C. cumulative attraction D. consumer spotting E. diminishing adjacent
C. cumulative attraction
200
On payday, Jun received his weekly salary plus 2% of each sale he made during the pay period. This is an example of a: A. benefit B. 401K C. gratuity D. prerequisite E. commission
E. commission
200
Because of their position in the supply chain, retailers are in a unique position to: A. collect purchase information from customers based on each transaction B. communicate openly with a multiple of distribution centers without causing animosity C. dictate price despite recommendations by vendors D. negotiate prices with vendors E. sell more than a competing manufacturer
A. collect purchase information from customers based on each transaction
200
The customer lifetime value (CLV) is the expected contribution from the customer to the retail's profits over his or her entire relationship with the retailer. TRUE OR FALSE
True
300
Even though malls are a good site option for retailers, they have their disadvantages. Which of the following describes one of these disadvantages? A. Each retailer is allowed to establish its hours of operation. B. Competition is kept to a minimum because developers try not to have more than one specialty store for each product category. C. The mall management has no control over exterior signs. D. Rents in malls are higher than other locations.
D. Rents in malls are higher than other locations.
300
Alyssa needed a new stirrup for her saddle. She had to drive 30 miles to the Western Tack store in order to make the purchase. To Alyssa, the Western Tack store is an example of a: A. Destination store B. Drawing store C. Magnet store D. Country goods store E. Tertiary-zoned store
A. Destination store
300
Mason is concerned that the salespeople in his men's clothing store are not spending enough time selling merchandise to customers. What should he do? A. Increase the sales commissions for his salespeople. B. Stock less merchandise. C. Change the incentives from commissions to straight salary. D. Fire the salespeople and hire new ones. E. Guarantee a minimum compensation.
A. Increase the sales commissions for his salespeople.
300
What is a benefit of having an efficient supply chain? A. fewer associates are needed to replenish stock B. more time for customer services C. less negotiating with vendors D. fewer stockouts E. planning strategy becomes more predictable
D. fewer stockouts
300
CRM is based on the philosophy that retailers can increase their profitability by ___. A. providing better assortments B. expanding their services C. building relationships with their better customers D. extending hours of operation E. advertising more By developing customer loyalty and increasing share of wallet with their best customer, retailers can increase their profitability.
C. building relationships with their better customers
400
What does the 80-20 rule mean? A. 80% of the buying comes from 20% of the vendors. B. 80% of sales come from 20% markdowns. C. 80% of the customers pay with 20% of their income. D. 80% of the sales or profits come from 20% of the customers. E. 80% of the merchandise is sold at 20% off.
D. 80% of the sales or profits come from 20% of the customers
400
_______________ is the process of locating the residences of customers for a store on a map and displaying their positions relative to the store location. A. Customer spotting B. Buying power tracking C. The analog approach D. Customer clustering E. Pirating
A. Customer spotting
400
The ___________ is used by catalog retailers and direct markets to identify the best prospects on the basis of when was the last time the customers made a purchase, how often they make purchases and how much they spent. A. RFM analysis B. 80-20 rule C. customer pyramid D. inverted pyramid E. yeild analysis
A. RFM analysis
400
The place where the point of sale data is stored, and that the organization uses to support its decisions is called __________. A. a spreadsheet B. a computerized processing unit C. a data holding cell D. a database chain E. a data warehouse
E. a data warehouse
400
Which of the following does NOT describe the customer relationship management which retailers implement? A. Retailers consider that all customers are not equally profitable. B. Retailers treat customers differently. C. Retailers concentrate on providing more value to their best customers using targeted promotions. D. Retailers provide more value to their best customers. E. All of the above describe customer relationship management.
E. All of the above describe customer relationship management
500
In the customer pyramid, which of the following would be most comparable to the 20% of the 80-20 rule? A. gold segment B. platinum segment C. diamond segment D. lead segment E. wood segment
B. platinum segment
500
A shopping center landlord that has the agreement to increase the rent by a fixed amount over a specified period of time has negotiated a ______________. A. sliding scale lease B. graduated lease C. maintenance-increase-recoupment lease D. fixed-rate leases E. percentage increase lease
B. graduated lease
500
Which of the following is TRUE regarding the customer pyramid? 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. All customers regardless of their segment must receive equitable promotional benefits. C. Customers in the Lead segment may actually cost the retailer money to serve them. D. Customers in the Gold segment are the most profitable and loyal customers. E. Customer in the Platinum segment place little emphasis on customer service.
C. Customers in the Lead segment may actually cost the retailer money to serve them
500
Each time a customer makes a purchase at a Walmart store from the Health and Beauty area, data is transmitted to nearest distribution center so the merchandise can be replenished and sent on the next truck delivery. Which strategy does Walmart utilize? A. cross check logistic strategy B. pull supply chain C. cost efficient logistic strategy D. push supply chain E. influential logistic strategy
B.pull supply chain
500
Since Yolanda used __________ to analyze what her customers buy together during a single store visit, she knows to place facial tissues by the cold medicine and Wonder bread by the Skippy Peanut Butter. A. market basket analysis B. computer analysis C. merchandising analysis D. allotment analysis E. location analysis
A. market basket analysis
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