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1. Which of the following does not indicate conditions that lead to intense rivalry that adversely affect a retailer who wants to enter the market?A. High fixed costsB. A large number of retailers with different sizesC. A lack of perceived differences between competing retailersD. Slow growth2. What type of product will a consumer look for without regard to time, money, or effort?A. Impulse productB. Comparison productC. Time-crunch productD. Specialty product3. Ian's job at the Nordstrom distribution center is to place some of the incoming apparel on hangers in size order before rolling them down to be ticketed. Ian is preparing the merchandise to beA. sorted and repacked for the conveyor.B. cross-docked.C. floor-ready.D. ready for logistics.4. The primary strategic objective of human resource management is toA. introduce new services in order to obtain customer loyalty.B. make sure the retailer abides by all state and federal laws.C. align the capabilities and behaviors of employees with the goals of the retail firm.D. decrease turnover.5. Which benefits does efficient supply chain management provide retailers concerning product availability?A. Reduced stockouts and employee productivityB. Increased backup stock level and reduced stockoutsC. Increased stock level and tailored assortmentsD. Reduced stockouts and tailored assortments6. A retailer can work to retain employees and build a mutual commitment best byA. treating employees all the same.B. reducing its fixed costs.C. empowering employees.D. promoting the company.7. 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 calledA. economies of scope.B. channel integration.C. channel competition.D. sales cannibalization.8. Which of the following describes the market expansion growth strategy?A. Opening stores of the same retail format in new market segments.B. Realizing growth by directing efforts toward existing customers using the retailer's present retailing format.C. Keeping existing stores open for longer hours.D. Displaying merchandise to increase impulse purchases and training salespeople to cross-sell.9. Demarkus finally received financial backing from his wealthy aunt in order to open a pawn shop. He contacted the landlord of a nearby shopping center since he had his eye on a vacant storefront. To his surprise, his request for a lease was denied. What most likely prevented the landlord from leasing to Demarkus?A. A licensing clauseB. A fixed-rate clauseC. A prohibited use clauseD. An escape clause10. For fashion merchandise where there is only one shipment of the product or collection, the best supply chain method to use is the _______ strategy.A. pull supply chainB. push supply chainC. cross check logisticD. cost efficient logistic11. What type of retailer would most likely benefit from the use of direct store delivery?A. A big box electronics retailerB. A big box discount storeC. A large department storeD. A supermarket12. Which of the following ratios is included as an integral part of the strategic profit model?A. Net profit marginB. Current liabilitiesC. Inventory turnoverD. Retained earnings
13. The information used to analyze a retailer's asset management path primarily comes from theA. financial leverage statementB. income statementC. strategic profit modelD. balance sheet14. Which of the following statements regarding the customer pyramid is true?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. Customers in the Gold segment are the most profitable and loyal customers.C. Customers in the Lead segment may actually cost the retailer money to serve them.D. All customers regardless of their segment must receive equitable promotional benefits.
15. How do retailers and vendors ensure that information that passes back and forth between retailers and vendors is secure?A. With a high level of planning, implementation and control of the flow of information, then the information will be secure.B. The system ensures that the information received has not been tampered with by ensuring that the communication is bothauthentic and authorized.C. Paper hard copies are sent to one another for comparison to be certain that the information is accurate.D. Suppliers, customers and new clients all have a form of access to information.16. 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 itsA. profitability statement.B. balance sheet.C. financial leverage statements.D. income statement.17. 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. BuyerB. Merchandise plannerC. Store managerD. Divisional merchandise manager18. Why have some vendors and retailers chosen not to adopt RFID tagging?A. They believe the additional costs do not benefit the return on investment.B. They're concerned about the potential health risk of radio frequency.End of examC. They're concerned about the data storage falling into the wrong hands.D. They don't want to replace people with the devices. 19. Goodwill Industries frequently hires disabled people as part of the community thrift store personnel. Which objective does Goodwill Industries value by this practice?A. PersonalB. SocietalC. FinancialD. Administrative20. 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. Increase the sales commissions for her salespeople.B. Stock less merchandise.C. Fire the salespeople and hire new ones.D. Change the incentives from commissions to bonuses.
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