Question1

Which of the following is an example of a controllable variable to an independent stationery and greeting card store?

Select one:

a. high seasonality, especially during the first two weeks of school, and holiday periods
b. consumer acceptance of the store's new free delivery policy
c. stocking a broad selection of computer-based supplies for neighborhood residents that have computers and printers
d. competition from a new supermarket that stocks greeting cards and stationery

Question2

Which management format best assures that individual retail store units have an overall retail strategy (store hours, merchandise selection, and price levels) that are most acceptable to community residents?

Select one:

a. centralized structure
b. decentralized structure
c. professional manager system
d. owner-manager system

Question3

An off-price retailer stocks first-quality, in-season, name-brand apparel, accessories, and footwear for the entire family with savings at 20 percent to 60 percent from regular department and specialty store prices. This constitutes its ________.

Select one:

a. goods/service category
b. organizational mission
c. target market
d. competitive advantage

Question4

The interdependency among all channel members is expressed ________.

Select one:

a. in a value delivery system
b. in an independent vertical channel system 
c. through vertical integration
d. in franchising

Question5

A retailer seeks to maximize the profitability of its inventory assortment through ________.

Select one:

a. Efficient Consumer Response
b. category management
c. optimal space planning
d. everyday low pricing

Question6

Which target market strategy is most complex in terms of planning and implementation?

Select one:

a. mass marketing 
b. concentrated marketing
c. differentiated marketing
d. market niche

Question7

The major difference between value and a value chain is that only ________.

Select one:

a. value covers tangible benefits
b. value covers intangible benefits
c. the value chain relates to a channel of distribution
d. the value chain covers the total bundle of benefits received by consumers

Question8

Airline travel is an example of a( n) ________ service.

Select one:

a. rented-goods
b. regulated goods
c. nongoods
d. owned-goods

Question9

A major potential disadvantage associated with the use of a differentiated marketing versus a mass marketing approach is that ________.

Select one:

a. a major market segment may be saturated with retail offerings
b. an unchosen segment may have more opportunities
c. differences in each segment may be small relative to the costs of reaching each segment
d. competition is increased in each segment

Question10

Just-in-time inventory management and electronic data interchange are examples of ________.

Select one:

a. a value chain
b. channel conflict
c. seamless logistics management 
d. direct store delivery

Question11

A retailer with sales of $1 million wants to increase its efficiency rating from 40 percent to 60 percent. To what must it reduce operating expenses?

Select one:

a. $200,000
b. $400,000
c. $500,000
d. $600,000

Question12

A major advantage of franchising from the perspective of the franchisor is ________.

Select one:

a. franchisor management assistance and troubleshooting 
b. lower operating costs due to shared purchases and advertising
c. rigid operations standards may limit franchisees from taking advantage of trends
d. the ability to develop a nationwide distribution system with minimum capital investment

Question13

A major advantage of a firm's developing a retail plan is that it ________.

Select one:

a. focuses on short-run tactics
b. anticipates and may avoid a crisis
c. balances sales forecasts with inventory requirements 
d. shows likely competitor reactions

Question14

Which return policy can be viewed as part of an augmented retail strategy?

Select one:

a. 7-day return policy
b. 10-day return policy
c. exchanges allowable but no money-back guarantee 
d. unconditional money-back guarantee

Question15

A major retailer studied the image of two of its units, a discount specialty store chain and an upscale specialty store chain, using a store positioning map technique. Each chain's images were clustered in separate quadrants. Which statement best explains this phenomenon?

Select one:

a. Each chain has a distinct image.
b. Both chains appeal to the mass market. 
c. Both chains appeal to the same target market.
d. Both chains are perceived as being upscale.