Retail Management 3

Questions

 

1. Geoff was conducting a job analysis for stocker positions in his grocery store. Geoff is concerned about what stockers do when business is low and what additional responsibilities are covered by the current stockers during these slower times. What should Geoff consider when doing the analysis? A. Geoff should pay close attention to the stockers’ time cards for falsification.

B. Geoff should ask the cashiers in the store what they witness the stockers doing during the off-peak hours.

C. Geoff should observe what the stockers do when business is slow and what they do in addition to stocking the shelves.

D. Geoff should watch the present stockers and note when they take breaks and the length of the breaks.

 

2. As a/an _______ type of store manager, Dina treats her employees as equals and asks for their input when she is making a decision about whether to stay open late during the Memorial Day weekend, stock extra inventory for Valentine’s Day, or any other decision that will directly affect her employees. A. task-oriented

B. democratic

C. job-directed

D. autocratic

 

3. Since a store design cannot achieve all objectives, managers need to made trade-offs among them. Which of the following does not describe such trade-offs? A. Retailers often make trade-offs between stimulating impulse purchases and making it easy to buy products.

B. Specialty store retailers encourage the ease of finding merchandise rather than exploration.

C. The trade-off between the ease of finding merchandise, and providing an interesting shopping experience is determined by the customer’s shopping needs.

D. Home Depot’s traditional design can efficiently store and display a lot of merchandise with long rows of floor-to-ceiling racks; however, this design is not good for a pleasant shopping experience.

 

4. When Hector ordered the model fighter jet for $22 from a hobby catalog, he was horrified to find that he was charged almost $19 for shipping charges. He swore never to buy anything from that catalog again. Due to a _______ gap, the catalog lost a customer. A. standards

B. performance

C. communication

D. knowledge

 

5. By using _______, stores can effectively organize their merchandise to follow the eye’s natural

 

 

movement. A. diagonal organization

B. vertical merchandising

C. the four dimensions of retail space

D. purchase visibility

 

6. As Garry was waiting to pay for a bottle of aspirin he bought at a pharmacy, he added a copy of TV Guide, a Snickers bar, and a pack of cheese crackers to his purchases. The area where Garry made his TV Guide and Snickers selections is called a/an A. cash wrap.

B. promotional area.

C. gondola display.

D. end cap.

 

7. Clarissa’s department had the worst sales performance in months. She was confident that she had quality merchandise and satisfied employees, so she should concentrate her efforts on A. hiring mature employees.

B. group maintenance behaviors.

C. autocratic behaviors.

D. task performance behaviors.

 

8. Why is it important for stores to be designed with flexibility in mind? A. Stores with flexible designs can respond to market changes without large-scale renovations.

B. Customers find it hard to locate merchandise if fixtures are rigid.

C. Department managers never know what to expect from the planners allocations and require the ability to display more merchandise at a moment’s notice.

D. It’s less expensive for retailers to build several different types of flexible fixtures than to build one inflexible fixture.

 

9. The difference between the service aspect and the merchandise aspect of the retail offering is _______ caused by intangibility of service. A. inconsistency

B. planning

C. affordability

D. flexibility

 

10. Which of the following does not describe aspects of grid layout? A. It provides a visually exciting design.

B. It is cost efficient.

C. It is well suited for shopping trips in which customers need to move throughout the entire store and quickly locate products they want to buy.

D. It is well suited for grocery retailers.

 

11. Which of the following has the least consideration when a retailer is deciding how much floor or shelf space to allocate to merchandise categories and brands?

 

 

A. Impact on store sales

B. The price of the merchandise

C. The merchandise’s inventory turnover

D. The productivity of the allocated space

 

12. Norman was recognized as the best Albertons’ employee of the year. His name, along with the names of other winners, is engraved on a plaque that is prominently displayed in the store. This is an example of A. job enrichment.

B. an intrinsic reward.

C. an extrinsic reward.

D. management by objective.

 

13. In which of the following stores would you be most likely to encounter a rounder as a common fixture? A. Rite Aid drugstores

B. The Brew House, a store that sells everything you need to brew your own beer

C. Sherlock, a store for mystery book lovers

D. Marshall’s, an off-price clothing retailer

 

14. Which of the following statements about the location of departments within retail department and discount stores is true? A. Most customers are drawn into the center of a store by the use of a free form design.

B. In general in a multilevel store, space’s value increases the further it is from the entry-level floor.

C. Because many customers turn left when entering a store, the left side is especially desirable floor space.

D. The best locations on any floor are those that are closest to the store’s entrances, main aisles, escalators, and elevators.

 

15. Catherine was delighted with the new spring apparel at American Eagle. The sales associate greeted her when she entered the store, showed her the new spring arrivals, then stayed with her throughout her shopping experience bringing her additional items while Catherine was in the dressing room. This sales service can best be described as A. personalized retailing.

B. personalized service.

C. individualized retailing.

D. standardization services.

 

16. Moselle was upset as to the service she received when she was trying to purchase a new handbag. First, the salesperson seemed preoccupied with a conversation with another associate and when she finally recognized Moselle, she was nowhere to be found when Moselle wanted to make a purchase. Moselle plans to make a formal complaint to management. What can a manager do to recover from this service failure? A. Fire the sales associate to reduce service recovery damage.

B. Make sure there are plenty of sales associates at all times.

C. Encourage the customer to complain by listening without interruption.

D. Give the handbag to Moselle for free to show commitment to high-quality customer service.

 

 

 

End of exam

17. A customer returned a textbook because she decided to drop the class after a few weeks. The sales clerk refunded the customer’s money immediately because the refund policy was “no questions asked.” What gap was reduced because of the clearly defined guideline? A. Communication

B. Knowledge standards

C. Performance

D. Delivery

 

18. A diagram that shows how and where specific products should be placed on retail shelves or displays to increase customer purchases is called a/an A. merchandise plan.

B. planogram.

C. allocation plan.

D. placement plan.

 

19. _______ is the difference between the recorded value of inventory based on merchandise bought and received and the value of the actual merchandise in stores and distribution centers divided by retail sales during the period. A. Inventory turnover

B. Shrinkage

C. Profit margin

D. Loss margin

 

20. To motivate its employees, Dillard’s department store has set performance goals for its employees. If an employee exceeds his or her daily performance goals, he or she will receive a bonus. This compensation method is called a A. quota-bonus plan.

B. task-oriented plan.

C. participative allowance.

D. straight bonus plan.