53 free test bank for retailing 8th edition

In attempting to determine whether a new fast-food restaurant should be opened in a small town, a retailer gathered information on demographics, competitors’ sales, and real estate avai

53 Free Test Bank for Retailing 8th Edition

by Dunne Mutiple Choice Questions

Identify the incorrect statement about e-tailing

1 a.It enables consumers to shop when they like and from where they like

2 b.It provides access to vast amounts of information, ranging from a product’s attributes to who has the lowest price

3 c.Many e-tailers offer personalized help online

4 d.With some Internet websites, individuals can band together for group buying

5 e.Some e-tailers may have to discontinue some product categories as

consumers engage in outshopping

The North American Industrial Classification System (NAICS) code

is used to reflect the:

1 a.location of the retailer

2 b.industrial category of the retailer

3 c.type of merchandise the retailer sells

4 d.size of the retailer in terms of sales dollars

5 e.margin the retailer maintains in its industrial category

In attempting to determine whether a new fast-food restaurant should be opened in a small town, a retailer gathered information

on demographics, competitors’ sales, and real estate available in that area The retailer was employing the _ method of retail decision-making

1 a.analytical

2 b.creative

3 c.intuitive

4 d.strategic

5 e.tactical

An environmental orientation will allow retailers to:

1 a.anticipate and adapt continuously to external forces

2 b.adapt systematically to a changing environment.

3 c.focus on fundamental management of assets, sales revenues and

expenses

4 d.focus on the need to collect and analyze data

5 e.to acquire merchandise from suppliers

A product sold at or below cost is known as:

1 a.freebie marketing

2 b.a loss leader

3 c.product bundling

4 d.a bait and switch

5 e.product churning

A (an) _ perspective can result in a standardized set

of procedures, success formulas and guidelines

1 a.creative

2 b.administrative

3 c.intuitive

4 d.strategic

5 e.analytical

Buying is defined as:

1 a.the career path that involves responsibility for selecting, for

selecting,training and

2 evaluating personnel

3 b.the career path that enables you to select merchandise lines through e-tailing

4 c.the career path whereby one use quantitative tools to develop appropriate

5 buying plans for the store’s merchandise lines

6 d.the career path that allows complete independence in ordering merchandise for the store

7 e.the career path that will eventually lead to vice president

Retailing is defined as:

1 a.any exchange of cash and/or credit for goods or services between channel members

2 b.a fairly stable and unchanging industry that has a major impact on society.

3 c.the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer or to provide services to the consumer

4 d.the sale of any good or service by the producer to a channel member

5 e.the activities and steps needed to transfer goods and/or services between channel members

Retailers that practice both analytical and creative management should be consistently more:

1 a.profitable

2 b.vibrant

3 c.liquid

4 d.successful in terms of market share

5 e.stable

Given the ever-changing needs of the retail environment, retail managers who possess _ are highly sought after as these managers have the ability to quickly alter plans to accommodate changes in trends, styles and attitudes

1 a.flexibility

2 b.leadership

3 c.initiative

4 d.enthusiasm

5 e.creativity

If you choose the store-management path, which of the following statements would be true?

1 a.Selecting, training, evaluation, and all other aspects of personnel

management are your responsibility

2 b.You will have to use quantitative tools such as the merchandise budget in your work

3 c.You are responsible for selecting the merchandise

4 d.You must select the vendors and negotiate terms with them

5 e.Store managers, who usually work out of the retailer’s main office but do spend a great amount of time traveling have to develop appropriate buying plans for their merchandise lines

_ refers to the number of times per year, on average, that a retailer sells its inventory

1 a.Periodic inventory

2 b.Carrying cost of inventory

3 c.Inventory reserve

4 d.Perpetual inventory

5 e.Inventory turnover

A retailer that carries such a large quantity of merchandise in a single category at such good prices that it makes it impossible for customers to walk out without purchasing what they need, thus killing the competition, is known as a(n):

1 a.capital-based retailer

2 b.category killer

3 c.divertive competitor

4 d.killer bee

5 e.supercenter

In the text, when the authors refer to chain stores they are normally referring to operations having _ or more units

1 a.2

2 b.7

3 c.10

4 d.20

5 e.25

Retail managers are often forced to deal with many issues,

functions, and projects at the same time Establishing priorities, plans, and follow through to achieve results demonstrates which prerequisite for success?

1 a.Initiative

2 b.Leadership

3 c.Risk Taking

4 d.Organization

5 e.Stress Tolerance

Which of the following is an example of a retail transaction?

1 a.A firm pays a printer for printing business cards

2 b.A supermarket purchases eggs from a local farmer for resale

3 c.A student purchases a magazine subscription from a door-to-door

salesperson

4 d.A manager of a college bookstore purchases extra copies of your Retailing text from the publisher

5 e.A department store purchases cosmetics from a manufacturer for sale in its stores

Jewelry stores are generally categorized as:

1 a.low-margin/high-turnover

2 b.high-margin/low-turnover

3 c.low-margin/low-turnover

4 d.high-margin/high-turnover

5 e.low-margin/moderate-turnover

Which of the following is NOT an operating expense?

1 a.Rent

2 b.Cost of goods sold

3 c.Depreciation

4 d.Utilities

5 e.Wages

If a retailer had an average inventory of $80,000 (retail) and annual sales of $480,000, how many times has that retailer turned over its inventory?

1 a.Four times a month

2 b.Six times a month

3 c.Four times a year

4 d.Six times a year

5 e.Eight times a year

Rapidly growing chain stores usually find it necessary to transfer store managers for the following reason:

1 a.to allow managers to live in the geographic location of their choice

2 b.to open new stores in new geographic locations

3 c.to make it possible for new managers to work in established business locations

4 d.to gain additional retail experience

5 e.to adhere to the principle of geographic mobility

The dominance of Walmart can be attributed to Sam Walton's

realization that:

1 a.most of any product's cost gets added after the item is produced

2 b.consumers desire great selection and are willing to pay higher prices to obtain that selection

3 c.most consumers prefer to complete all of their shopping in one store to minimize their overall shopping time

4 d.most consumers would prefer to shop in large stores rather than small stores as they believe that larger stores offer higher customer service

5 e.the company’s primary focus should be on its profits

Due to increased corporate responsibilities, the manager of a

sporting goods store has asked the assistant manager to take

responsibility for screening and hiring new sales associates The manager is allowing the assistant to make the decisions

independently, but has scheduled weekly meetings for the two to discuss any issues of concern and to provide insight, if needed The manager is demonstrating which desirable retailing attribute?

1 a.Prioritizing

2 b.Leadership

3 c.Creativity

4 d.Laziness

5 e.Enthusiasm

Which of the following statements about private label brands is false?

1 a.Private labels allow the retailer to control the costs associated with

developing, making, sourcing, and promoting the label

2 b.Private labels are advertised in the newspaper as brands and are heavily promoted in stores

3 c.Private label brands are usually sold at lower prices than manufacturer's brands

4 d.Private label brands have been successful in the grocery industry, while failing in most other retail sectors

5 e.Some retailers can’t use private labels unless they are part of a buying group

A channel captain:

1 a.is a retailer that carries a large amount of merchandise in the marketing channel at good prices

2 b.helps the customer gets needed information in the store and then orders it online for a lower price and to avoid paying state sales tax

3 c.is the institution in the marketing channel that is able to plan for and get other channel institutions to engage in activities they might not otherwise engage in

4 d.provides information on the structure of retail competition

5 e.is a retailer that develops its own brand name and contracts with a

manufacturer to produce the product with the retailer’s brand

Which of the following is NOT one of the ways by which retailers are categorized?

1 a.Location

2 b.Market share

3 c.Number of outlets

4 d.Size

5 e.Margin vs turnover

_ 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

1 a.Cross-merchandising

2 b.Piggybacking

3 c.Automatic merchandising

4 d.Product diversification

5 e.Scrambled merchandising

Which of the following statements about NAICS codes is false?

1 a.Three-digit NAICS codes are very useful to the retail analyst

2 b.In almost all instances, the NAICS code reflects the type of merchandise the retailer sells

3 c.Four-digit NAICS codes provide much more information on the structure of retail competition than three-digit NAICS codes

4 d.The U.S Bureau of Census classifies all retailers using three-digit NAICS codes

5 e.The major portion of a retailer’s competition comes from other retailers in its NAICS category

Which of the following characteristics is NOT desirable for a retail manager to possess?

1 a.Enthusiasm

2 b.Creativity

3 c.Analytical skills

4 d.Indecisiveness

5 e.Initiative

One of the most dramatic changes created by e-tailing is a shift in power between retailers and consumers This shift in power is

derived from:

1 a.the ability of consumers to purchase from retailers in other countries as a result of the Internet

2 b.the inability of Internet retailers to compete with more traditional bricks-and-mortar retailers

3 c.the loss of control of pricing information by retailers due to the information dissemination capabilities of the Internet

4 d.the lack of competition in e-tailing

5 e.the decreased power of consumers when transacting and negotiating with retailers

Large chains which recognize that consumer tastes vary by region often use a(n) _ to give each store the flexibility to adjust its merchandise mix

1 a.standard stock list

2 b.flexible merchandise planning center

3 c.private label branding strategy

4 d.localized merchandise planning center

5 e.optional stock list

Which of the following is true about a retailing career?

1 a.Since retailing is so diverse, all individuals are suited for a retail career

2 b.A career in retailing is limited to those living in densely populated areas

3 c.Starting salaries are higher in retailing than in most other careers

4 d.The potential for retail career advancement is high

5 e.Nationally, the number of careers in retailing is expected to decline over the next decade

A successful retail manager will use the:

1 a.analytical method only

2 b.creative method only

3 c.strategic method only

4 d.analytical and creative methods

5 e.analytical, creative, and strategic methods

Which of the following statements is correct?

1 a.Operating costs per sales dollar are usually lower for larger retailers than they are for small retailers

2 b.Larger retail firms generally have higher operating costs per sales dollar

3 c.Retailers cannot be classified by number of stores

4 d.Retailers are rarely classified by sales volume

5 e.The operating performance of retailers has no relationship to retailers' size

Which of the following demographic factors have been significant sources of change over the last decade?

1 a.Fluctuating birth rate, the increasing number of immigrants, the growing importance of Generation-Y consumers, the fact that Generation-Xers are starting to reach middle age and that baby boomers are nearing retirement age

2 b.Aging of baby boomers, declining household incomes, decline in part-time workers, redistribution of income levels, and the rise in the number of college graduates

3 c.Increasing number of women in the workplace, declining household

incomes, rise in part-time workers, rise in teenage suicide, and redistribution of income levels

4 d.Fluctuating birth rate, the growing importance of Generation-X consumers, the fact that Generation-Yers are starting to reach middle age, and the

increasing number of women in the workforce

5 e.Fluctuating birth rate, the growing importance of Generation-X consumers, the fact that Generation-Yers are starting to reach middle age, and the decline

in household incomes

The fastest growing form of e-tailing or e-commerce is

1 a.texting

2 b.m-tailing or m-commerce

3 c.social network advertising

4 d.personalized on line help

5 e.on-line auctions

If a retailer has a 25 percent gross-margin percentage, how much will be generated in gross-margin dollars for each $100 of sales?

1 a.$25.00

2 b.$75.00

3 c.$2.50

4 d.$4.50

5 e.$7.50

An operator of which of the following establishments is NOT a

retailer?

1 a.A catering service specializing in weddings

2 b.A computer firm selling software to households via the Internet

3 c.A student going door-to-door selling magazine subscriptions

4 d.A corporate property management firm.

5 e.An ice cream shop in the student union

An alternative to scrambling merchandise to increase profitability that many retailers are implementing is:

1 a.limiting Internet access to customers in stores

2 b.selling many different and unrelated items

3 c.becoming a discount store

4 d.reducing store size

5 e.selling merchandise on line only

Market share refers to:

1 a.the number of competitors a retailer must contend with

2 b.a retailer's total sales divided by total market sales

3 c.agreements whereby retailers attempt to "share" certain costs

4 d.the total sales a retailer has generated from the target market

5 e.the portion of a retailer's sales that represent profit

Retailers with several units are a stronger competitive threat

because

1 a.they can focus all their efforts on one trade area

2 b.they are generally owner and family operated

3 c.they can spread many fixed costs over a number of stores and can achieve economies in purchasing

4 d.they can tailor their merchandising to one trade area in each unit

5 e.they can spot customer desires sooner and respond faster

Gross margin can be defined as:

1 a.net sales minus the cost of the goods sold

2 b.the selling price charged for a piece of merchandise or a service plus variable operating expenses

3 c.the difference between total profits and total expenses

4 d.the cost of merchandise in a retailer's inventory

5 e.the cost of goods sold at less operating expenses