A) remember the names of the customer's children and spouse
B) ask another salesperson with the customer's communication style to call the customer
C) know which products a customer will buy and won't buy
D) remember to adapt his or her style when calling the customer
E) avoid customers that have different communication styles
Answer: D
A) sociability paradox
B) dominance paradox
C) strength-weakness paradox
D) flexing paradox
E) communication paradox
Answer: C
A) fixed by the time a person reaches elementary school
B) subject to change as a person matures
C) aloof and stuffy
D) characteristics that come out in times of high stress
E) offensive to those with other communication styles
Answer: B
A) directive
B) supportive
C) emotive
D) reflective
E) versatility
Answer: E
A) choose customers based on their communication styles
B) write presentation materials in a way that appeals to all the communication styles simultaneously
C) send trained communicators to talk to customers
D) adapt your style to the way the customer communicates
E) create a corporate policy matching salespeople with customers by communication style
Answer: D
A) use that style exclusively
B) change that style as you grow older
C) display other communication styles at times
D) not understand others with different communication styles
E) need to adapt to e able to talk to others
Answer: C
A) dominant but hidden
B) dominant and easily detectable
C) dominant and problematic
D) recessive and easily detectable
E) recessive and in transition
Answer: B
A) relater
B) influencing
C) socializer
D) adaptive-dealing
E) expressive
Answer: A
A) popular and taught in many different training programs
B) useful only for training purposes
C) limited in its usefulness in the real world
D) the basis for customer strategy
E) copyrighted and may only be used as an assessment by licensed practitioners
Answer: A
A) emotive
B) supportive
C) directive
D) reflective
E) communicative
Answer: B
A) the immature side of the supportive style
B) the mature side of the supportive style
C) the immature side of the reflective style
D) the mature side of the reflective style
E) the mature side of the directive style
Answer: C
A) mature
B) supportive
C) emotive
D) reflective
E) directive
Answer: D
A) reserved
B) sensitive
C) frank
D) sociable
E) malleable
Answer: A
A) communicative
B) reflective
C) supportive
D) emotive
E) directive
Answer: E
A) dominant
B) reflective
C) supportive
D) directive
E) emotive
Answer: E
A) communication bias
B) emotional index
C) sensitive scale
D) excess zone
E) sociability continuum
Answer: E
A) deliberate
B) hurried
C) talkative
D) cooperative
E) decisive
Answer: D
A) display an eagerness to agree quickly
B) curb the desire to initiate demands
C) be overly cooperative
D) like to control things
E) sit back and wait for the other person to speak first
Answer: D
A) It is based on three important dimensions of human behavior.
B) It reflects research conducted in the late 1970s.
C) It is composed of four distinct quadrants, each representing a major communication style.
D) It is composed of six distinct quadrants, each representing a major dimension of human behavior.
E) It predicts which types of clients salespeople will have interests in common with.
Answer: C
A) individual differences exist and are important
B) the most successful business and social relationships are those between identical styles
C) there is a finite number of communication styles
D) individual style differences tend to be stable
E) a communication style is a way of thinking and behaving
Answer: B
A) It is formed in utero, before we are born.
B) It is formed during the first year of our life.
C) It is formed before we enter elementary school.
D) It is constantly changing throughout life.
E) It is based on environmental factors, not heredity.
Answer: C
A) Salespeople have contact with another person whose communication style is different than their own.
B) Salespeople have problems understanding another person's accent.
C) Salespeople have different ranges of vocabulary.
D) Salespeople lack a grasp of social etiquette.
E) Salespeople talk more quietly than anyone else in the room does.
Answer: A
A) Communication-style bias is quite rare.
B) Communication-style bias is accompanied by symptoms that are often difficult to explain.
C) Communication-style bias is commonly understood in our society.
D) Communication-style bias will not surface between two people with the same communication style.
E) Communication-style bias will make a consulting sales relationship impossible.
Answer: B
A) communication style
B) emotive style
C) directive style
D) higher dominance
E) lower dominance
Answer: A
A) compare your performance to others
B) set goals
C) use visualization
D) use positive self-talk
E) reward your progress
Answer: A
A) customize
B) appreciate
C) respond
D) execute
E) involve
Answer: E
A) here and now observations
B) compliments
C) mutual acquaintances
D) politics
E) common interests
Answer: D
A) Do not call a new prospect by their first name too soon.
B) Avoid offensive stories or comments.
C) Do not express personal views on religion or politics until clients have first expressed their views.
D) When you invite a customer to lunch, do not discuss business before the meal is ordered unless the client initiates the subject.
E) Leave a clear, concise message when you leave a message on voice mail.
Answer: C
A) talking too quickly
B) talking enthusiastically
C) talking too slowly
D) speaking in a dull pattern
E) using poor speech habits
Answer: B
A) on the telephone
B) at a face-to-face meeting
C) in a webinar
D) by email
E) by instant message
Answer: A
A) Business casual is always acceptable.
B) The salesperson should always be dressed more formally than the client is.
C) Men should wear blazers and button-down shirts, and women should wear heels and dresses or skirts.
D) Observe what your customers wear and match your clothing to theirs.
E) As long as you are a professional your clothing will have no impact on your job performance.
Answer: D
A) simplicity
B) appropriateness
C) fashion
D) quality
E) visual integrity
Answer: C
A) Most customers have never consciously put into words their feelings about dress and grooming.
B) People seldom have strong feelings about what is appropriate in terms of dress and grooming.
C) It is not possible to anticipate what is appropriate in dress and grooming because customers' expectations are never known.
D) Every person seems to have very different expectations regarding what is appropriate in terms of dress and grooming.
E) Every person has formed certain views about what is appropriate in terms of dress and grooming for specific occupations.
Answer: E
A) so varied that no general guidelines can be established
B) subject to some general guidelines
C) clearly defined for most occupations
D) clearly defined for most occupations with the exception of personal selling
E) clearly defined in the literature but not commonly understood by the layman
Answer: B
A) Looking at papers in your briefcase indicates to the customer that you are listening.
B) Nodding occasionally indicates interest.
C) Eye contact is one of the best ways to say "I'm listening."
D) A fleeting glance at notes is appropriate.
E) A prolonged, direct stare can be threatening.
Answer: A
A) a contemplative look
B) a smile
C) a frown
D) a look of concern
E) a look of skepticism
Answer: B
A) verify the spelling of the person's name
B) repeat the name immediately
C) write the name on a nametag
D) ask how the person would like to be addressed
E) relate the name to something easy to remember
Answer: C
A) strength
B) fear
C) dominance
D) indifference
E) antagonism
Answer: D
A) a caring attitude
B) respect
C) an image of strength
D) warmth
E) aloofness
Answer: E
A) a person's intention may not translate into the verbal message the person conveys
B) nonverbal behaviors seldom reinforce verbal messages
C) the meaning we attach to what is said by another person depends little on visual and auditory data
D) nonverbal behaviors do not contradict verbal messages
E) words play a surprisingly small role in the communications process
Answer: E
A) much less impact than verbal messages
B) slightly less impact than verbal messages
C) slightly more impact that verbal messages
D) much more impact than verbal messages
E) the same impact as verbal messages
Answer: D
A) dress and grooming
B) confidence communicated by your voice
C) choice of words to communicate facts and figures
D) facial expressions and gestures
E) posture and demeanor
Answer: C
A) Both buyer and seller come away from the negotiation having given up something they originally wanted.
B) Both buyer and seller come away from the negotiation feeling that their best interests have been served.
C) Both buyer and seller come away from the negotiation feeling that they have made a new friend.
D) Neither buyer nor seller comes away from the negotiation feeling that they have made progress.
E) Neither buyer nor seller comes away from the negotiation having given up anything.
Answer: B
A) Learn to develop a positive mental attitude.
B) Maintain a clear focus on past mistakes.
C) Spend time getting to know your competition.
D) Spend time each day contacting your current customers.
E) Develop a general level of knowledge on many topics.
Answer: A
A) self-concept
B) self-love
C) self-esteem
D) self-mythology
E) self-examination
Answer: A
A) transactional selling
B) generic selling
C) strategic alliance selling
D) consultative selling
E) missionary selling
Answer: C
A) a credit department staffer employed by the same company as the salesperson
B) the administrative assistant who works for the CEO of an established customer
C) a shipping department worker employed by the same company as the salesperson
D) the secretary who provides support services for the sales staff
E) the accounts payable clerk who works for the vendor
Answer: B
A) management personnel
B) company support staff
C) secondary decision makers
D) vendors
E) customers
Answer: D
A) make sure everybody understands the purpose of the partnership
B) be sure the relationship is built upon shared values
C) the role of the salesperson must move from selling to supporting
D) the salesperson and the client must agree on what they want to do together
E) use closing methods that establish a foundation for a long-term partnership
Answer: E
A) executing
B) consulting
C) selling
D) managing a relationship
E) partnering
Answer: E
A) the profitability to the company that a customer represents
B) building a career that will translate even if they switch companies
C) maximizing their time by automating most functions
D) the total lifetime relationship with the customer
E) the total life cycle of a given sale
Answer: D
A) relationship modeling
B) customer-oriented sales
C) value-added selling
D) transactional selling
E) managing relationships
Answer: C
A) projecting a professional image
B) managing relationships
C) developing empathy
D) developing rapport
E) adding value
Answer: B
A) emotional intelligence
B) relationship partnering
C) a relationship strategy
D) self-concept
E) a win-win relationship
Answer: A
A) university sales methods class
B) corporate-sponsored training class
C) internet-based training program
D) certification program
E) college concentration
Answer: D
A) Universal Sales Theory
B) the theories of Dale Carnegie and Napoleon Hill
C) a variety of sales approaches dating back decades
D) modern sales approaches that have been regression-tested
E) graduate-level MBA sales work
Answer: C
A) training on CRM software
B) training in accounting methods and theory
C) training delivered on the Internet
D) training that takes months to complete
E) training that is cost-intensive
Answer: B
A) creates a pyramid with the CEO at the top and the salespeople at the bottom
B) eschews growth of the salesforce for a given product
C) relies on an interconnected network of independent salespeople to sell the product directly
D) focuses on paid advertising instead of word-of-mouth publicity
E) allies itself with competing products and service providers
Answer: C
A) personal computers, automobiles and assembly line robotics equipment
B) photographic equipment, industrial specialties and recreational equipment
C) fashion apparel, personal computers and recreational vehicles
D) microchips, musical instruments and automobiles
E) software back-end integration services, jewelry, and motorcycles
Answer: c
A) detail salesperson
B) retail salesperson
C) inside salesperson
D) field representative
E) manufacturer's representative
Answer: A
A) be promoted to management
B) avoid working traditional hours
C) have greater flexibility with retirement
D) make more money
E) generate pension credits
Answer: D
A) sales engineer
B) field salesperson
C) detail salesperson
D) technical support representative
E) customer service representative
Answer: D
A) provide service on the product after the sale
B) develop the product as part of the research and development team
C) communicate the benefits of the product to the customers
D) have advanced degrees in science or technology
E) have graduate-level sales training
Answer: C
A) deregulation of telephone service
B) anti-trust suits brought against the telecommunications industry
C) financial improprieties in the telecommunications industry discovered by internal auditor
D) creation of a national regulatory committee for telephone service
E) development of voice-over-IP (VOIP) technologies
Answer: A
A) hotel, motel, and convention centers
B) insurance
C) banking
D) real estate
E) chemicals
Answer: E
A) service providers connect directly with consumers
B) the service industry has a higher growth rate than the product industry does
C) modern consumers need help with activities that they used to be able to do on their own
D) the service industry is starting to saturate the market relative to the industrial and product industries
E) the service industry provides a higher commission rate for salespeople than the other industries also
Answer: B
A) directly from the manufacturer to the consumer
B) from the distributor to the consumer
C) bypassing the manufacturer to the distributor
D) inside the supply chain but not to the consumer
E) externally from the consumer to the supplier
Answer: D
A) compete for sales and customers
B) duplicate their efforts and increase the company's cost per sale
C) work together to generate leads, close sales, and provide service
D) exchange leads depending on what the expected sales will be
E) combine their monthly sales figures to increase commissions
Answer: C
A) an inside sales rep
B) an outside sales rep
C) an alignment rep
D) a distributing rep
E) an interchange rep
Answer: B
A) outside salespeople
B) account managers
C) technical support personnel
D) customer service representatives
E) internal auditors
Answer: E
A) The pay gap in sales is less than the pay gap in the workforce overall.
B) The pay gap varies from company to company.
C) The pay gap is only an issue in certain industries.
D) The psychic income from sales is equivalent to the value of the pay gap.
E) The psychic income from sales cannot be quantified.
Answer: A
A) Salespeople have limited opportunities for advancement.
B) Salespeople receive a minimal amount of psychic income.
C) Salespeople generally do not have good job security.
D) Salespeople have numerous opportunities to advance to middle-management ranks.
E) Salespeople have high visibility within companies already relative to other positions.
Answer: E
A) the visibility provided by working in the sales department
B) the satisfaction of being on a commission payment plan
C) the high commissions earned because of successful "intuitive" selling
D) the opportunity to be a member of the sales team
E) the job recognition afforded sales personnel
Answer: E
A) feature/benefit
B) transactional
C) value-added
D) solution
E) directed
Answer: C
A) bonuses only
B) base salary, commissions, and bonuses
C) commissions and charge-backs
D) bonuses and dividends
E) IPOs and base salary
Answer: B
A) service calls
B) face-to-face selling
C) telephone selling
D) waiting and traveling
E) administrative tasks
Answer: D
A) an increase in commission per sale
B) an increase in the time spent on personal relationships
C) an increase in web-based selling channels
D) a shift from in-person to telephone sales
E) a shift from "selling" to "consulting"
Answer: E
A) processing paperwork
B) shipping or delivering products
C) providing telephone support for installation
D) calling customers to make sure their product is working
E) reconciling bank statements with accounting records
Answer: E
A) turning the concept of sales on its head
B) taking from those with financial resources without their realizing it
C) using selling skills to support philanthropy
D) taxing the wealthy
E) performing a sales function without having selling skills
Answer: C
A) to gather information on customer needs and preferences
B) to deduct mileage on his vehicle as a way to offset taxes
C) to undercut the salespeople in underperforming divisions of SwiftLink
D) to ensure that the salespeople do not give volume discount pricing
E) to trade information to customers in exchange for information on competitors
Answer: B
A) to gather information on customer needs and preferences
B) to deduct mileage on his vehicle as a way to offset taxes
C) to undercut the salespeople in underperforming divisions of SwiftLink
D) to ensure that the salespeople do not give volume discount pricing
E) to trade information to customers in exchange for information on competitors
Answer: A
A) Learning selling skills will give Dr. Grindel an alternate career once she retires from medicine.
B) Learning selling skills will help Dr. Grindel bring new patients to her practice.
C) Learning selling skills will aid Dr. Grindel in communicating effectively with pharmaceutical reps who show her new medications.
D) Learning selling skills will show Dr. Grindel how to ensure that her patients take the medications she prescribes them.
E) Learning selling skills will require Dr. Grindel to understand the financial pressures of running practice.
Answer: B
A) they position and lay out information in a way that helps buyers understand it
B) they gain knowledge of the product before they can sell it
C) they repeat a script that they are given by their managers
D) they develop understanding of the best practices of sales
E) they create products themselves before they can sell them
Answer: A
A) someone who performs research to discover new information
B) someone who takes current research and uses it to facilitate a task
C) someone who relays information from one party to another without changing it
D) someone who puts information in a format that allows others to access it
E) someone who uses information to solve a problem
Answer: C
A) understanding the customer's value needs
B) creating the value proposition
C) communicating the value proposition
D) delivering the value proposition
E) presenting the value proposition
Answer: E
A) exchange theory
B) personal selling
C) the value-added economy
D) the information economy
E) the post-consumer economy
Answer: D
A) marketing concept
B) value-added selling
C) customer relationship management
D) personal sales philosophy
E) customer strategy
Answer: C
A) customers
B) competitors
C) prospects
D) coworkers
E) suppliers
Answer: B
A) can strengthen your relationship with a customer
B) should be secondary to closing a sale
C) is rare in the world of sales
D) will lead to lost revenue for a company
E) often puts you in conflict with your customers
Answer: A
A) enlist legal assistance to make sure its interests are protected
B) talk to the customer to discover what its needs are
C) assemble a team of product experts
D) define the ethical guidelines that will apply to the alliance
E) find out as much about the proposed partner as possible
Answer: E
A) marketing strategy
B) customer strategy alliance
C) sales strategy
D) strategic selling alliance
E) successive sales alliance
Answer: D
A) giving them cheaper prices
B) selling more products than the competition
C) helping them improve their menus
D) providing various payment options
E) expediting shipments
Answer: C
A) equal to the initial sales
B) greater than the initial or repeat sales
C) not necessarily guaranteed
D) a function of the price of the product
E) transactional in nature
Answer: B
A) marketing alliance
B) value-added alliance
C) partnering alliance
D) customer partnership alliance
E) strategic selling alliance
Answer: E
A) quality relationships
B) low prices
C) free shipping
D) custom installation
E) little contact
Answer: A
A) a need to use fewer salespeople to sell more products
B) the growing demand for less expensive products
C) the need for salespeople to master sales force automation practices
D) new levels of competition
E) several trends that resulted in a more complex selling environment
Answer: E
A) selling strategies
B) product development
C) selling tactics
D) the customer
E) the salesperson
Answer: D
A) maintaining a close partnership
B) what the customer needs
C) the profit margins of the product
D) the relationship between the selling partners
E) the company's sales quotas
Answer: B
A) product strategy
B) customer strategy
C) presentation strategy
D) relationship strategy
E) marketing strategy
Answer: C
A) connected to each other
B) in conflict with each other
C) independent of each other
D) not independent of each other
E) identical to each other
Answer: D
A) presentation strategy
B) product strategy
C) customer strategy
D) relationship strategy
E) price strategy
Answer: C
A) relationship strategy
B) product strategy
C) customer strategy
D) service strategy
E) presentation strategy
Answer: D
A) relationship strategy
B) customer strategy
C) service strategy
D) presentation strategy
E) product strategy
Answer: E
A) relationship strategy
B) customer strategy
C) product strategy
D) presentation strategy
E) personal selling philosophy
Answer: A
A) product strategy
B) customer strategy
C) presentation strategy
D) relationship strategy
E) marketing strategy
Answer: D
A) sales, promotion, and advertising
B) market research, personnel, and product publicity
C) product research, product design, product production, and product publicity
D) public relations, place, personal selling, and personnel
E) sales promotion, public relations, personal selling, and advertising
Answer: E
A) personnel
B) product
C) promotion
D) place
E) price
Answer: A
A) To become a leader in international shipping
B) To become the world's most profitable company
C) To render perfect service to our stores and their customers
D) To become the world's most efficient shipping company
E) To become the fastest shipper in the world
Answer: C
A) Let's speed up production and get these products to customers faster by eliminating the fiel test.
B) Let's show these product designs to some prospective buyers for their reactions.
C) Let's examine our points of distribution to see if we're reaching the market effectively.
D) Let's do some research to see which colors the consumers prefer.
E) Let's ask customers which products they used most heavily.
Answer: A
A) product diversification
B) customer satisfaction
C) brand loyalty
D) rising profit margins
E) efficiency of production
Answer: B
A) The value added by salespeople today is increasingly derived from tangibles.
B) The value added by salespeople today is increasingly derived from intangibles.
C) Value-added selling surfaced during the evolution of strategic selling.
D) Value-added selling would not be an appropriate strategy in international markets.
E) Value-added selling is only appropriate for services, not products.
Answer: B
A) new demands for improved customer service
B) recognition that customers want more information
C) major advances in information technology
D) the need for more strategic alliances
E) diversification of products
Answer: C
A) a full acceptance of the marketing concept
B) a full appreciation of the tenets of the free enterprise system
C) developing an appreciation for the expanding role of personal selling in our competitive national and international markets
D) assuming the role of a problem-solver in helping customers make complex buying decisions
E) assuming the role of a partner in helping customers make complex buying decisions
Answer: B
A) information, services, ideas, and issues
B) information and items
C) tangible items and issues
D) all tangible items
E) all intangible items
Answer: A
a. Fixture
b. Directional
c. Point-of-sale
d. Price/info
e. Category
Answer: C
a. Fixture
b. Directional
c. Point-of-sale
d. Price/info
e. Category
Answer: E
a. Fixture
b. Directional
c. Point-of-sale
d. Price/info
e. Category
Answer: B
a. logo signage at the rear of the store.
b. directional and departmental signage.
c. signage comparing the store's prices to competitors.
d. signage that points out the product's features.
e. point-of-sale signage.
Answer: B
a. Mission signage
b. Store signage
c. Category signage
d. Institutional signage
e. Policy signage
Answer: D
a. Store name and logo
b. Background music
c. Institutional signage
d. Directional and category signage
e. Lifestyle graphics
Answer: B
a. retailers are making bigger investments in high-tech methods of communications.
b. customers are becoming increasingly sophisticated.
c. retailers have found it necessary to cut costs by reducing their sales staffs.
d. they provide better service than sales associates.
e. more and more people are functionally illiterate.
Answer: C
a. Effective store designs should appeal only to the senses of sight and sound.
b. Background music is no longer considered a valuable marketing tool to influence shopper behavior.
c. Retailers today are trying to use lighting as a key in-store marketing tool to put consumers in the "mood".
d. The tempo of music affects how long shoppers stay in a store.
e. The placement of ads in a store's background music is illegal in the United Sates.
Answer: D
a. ambience
b. sensory assault
c. sensory maximization
d. total sensory
e. sensory decor
Answer: D
a. title.
b. prologue.
c. chapters.
d. ending.
e. book cover.
Answer: E
a. Feel
b. Ambience
c. Flavor
d. Sense
e. Decor
Answer: B
a. It is not typically associated with a shopable fixture.
b. It is usually located in a focal point or feature area of the store.
c. It is most widely used by discounters and other low-price retailers.
d. It makes use of props in addition to the merchandise.
e. It does not have to include merchandise.
Answer: C
a. the practice of making the most profitable merchandise the most visible.
b. the practice of making all the merchandise as visible as possible.
c. practiced by lower-end stores attempting to shake their "cheap" image.
d. the artistic display of merchandise and theatrical props to set the tone for the store.
e. intended to be highly shopable.
Answer: D
a. Large, metal, bulky fixtures will enhance sales while more delicate fixtures reduce sales potential.
b. When shopping for clothing, let the fixtures point out the sizes before they reveal the color of the items.
c. Design the store so that customers can view all the fixtures holding the merchandise by turning at a 90-degree angle from their normal path of travel.
d. Always use simple "earth tones."
e. Match the fixture to the merchandise, not the merchandise to the fixture.
Answer: E
a. Displaying merchandise in vertical bands of color can increase sales.
b. Consumers always turn left when entering a store for the first time.
c. Shoppers view merchandise at 45-degree angles from their path of travel.
d. Merchandise displays evoke images of how trendy or value oriented a retailer is.
e. Displaying hair-care products on a high series of shelves in the waiting area that is lighted with fluorescent light fixtures.
Answer: B
a. different merchandising methods can strongly influence buying habits.
b. merchandise presentation teaches consumers how to shop effectively.
c. consumers in a store should be led around like mice through a maze.
d. social factors strongly influence shopping behavior.
e. shoppers can be classified according to psychological tests.
Answer: A
a. Stacking and shelving
b. Pegging and folding
c. Dumping and shelving
d. Stacking and dumping
e. Hanging and pegging
Answer: D
a. can be labor intensive to display and maintain.
b. makes small merchandise appear disorderly and haphazard.
c. cannot be incorporated into a wall system.
d. gives a low-cost, low-quality image to a store.
e. cannot work with gondolas.
Answer: A
a. four-way rack
b. gondola
c. round rack
d. straight rack
e. flat-base deck
Answer: A
a. it allows garments to be presented face out.
b. it holds more merchandise than either the straight rack or the four-way rack.
c. it holds the bulk of merchandise without looking as heavy as a long straight rack.
d. it is less expensive than the gondola and twelve-hold rack.
e. it takes up less floor space than either the straight rack or the four-way rack.
Answer: C
a. table
b. round rack
c. gondola
d. basket
e. flat-base decks
Answer: C
a. Hardline merchandising
b. Feature merchandising
c. Softline merchandising
d. On-shelf merchandising
e. Visual merchandising
Answer: D
a. visual merchandising and nonvisual merchandising.
b. product merchandising and service merchandising.
c. hardline merchandising and softline merchandising.
d. fixture merchandising and wall merchandising.
e. on-shelf merchandising and visual merchandising.
Answer: E
a. fitting rooms, aisles crowded with extra merchandise, and behind high displays.
b. layaway and customer service areas.
c. back rooms, especially the loading dock.
d. office spaces.
e. restrooms.
Answer: A
a. automobile showrooms.
b. discount department stores.
c. drugstores.
d. medium-sized specialty stores.
e. discount furniture stores.
Answer: D
a. complex
b. spine
c. master flow
d. flexible
e. mixed
Answer: B
a. provides a major customer aisle which begins at the entrance, loops through the store and then moves the customer to the "clearance" merchandise section of the store.
b. never lets the customer stray more than 10 feet from any of the merchandise in the store.
c. encourages customers to flow freely through all the fixtures, since there are usually no defined traffic patterns in the store.
d. lets the shopper get in and out of the store very quickly.
e. exposes shoppers to the greatest possible amount of merchandise.
Answer: E
a. Grid
b. Circle
c. Free flow
d. Loop
e. Flexible
Answer: D
a. standard
b. free-flow
c. grid
d. boutique
e. mini-store
Answer: C
a. automobile showroom.
b. jewelry store.
c. drugstore.
d. apparel shop.
e. furniture store.
Answer: C
a. it fails to provide cues as to where one department stops and another starts.
b. customers are encouraged to spend too much time browsing rather than moving efficiently through the store.
c. the arrangement of merchandise is difficult to blend for a consistent store environment.
d. they encourage customers to browse through the entire store so that they can see all of the merchandise and not concentrate on one area.
e. the average time spent in any particular department is reduced, thereby reducing average sales.
Answer: A
a. standard
b. free-flow
c. grid
d. loop
e. spine
Answer: B
a. spine, cluster, loop, and partition.
b. free flow, cluster, partition, and grid.
c. cluster, free flow, loop, and spine.
d. free flow, grid, loop, and spine.
e. cluster, loop, spine, and partition.
Answer: D
a. the number of retail customers multiplied by the length of time they spend in the store.
b. the number of retail customers divided by the square foot of retail space.
c. the number of products carried multiplied by the number of retail customers.
d. the number of products carried multiplied by the shelf space available divided by the number of retail customers.
e. retail sales divided by square footage.
Answer: A
a. reducing the amount of space allocated to this category, since it is underperforming.
b. lowering the price of the merchandise in this department in order to boost its sales per sq. ft., which will improve its index.
c. firing the buyer, because 1.35 is a very poor space productivity index number.
d. moving the product class to a more visible location within the store in hopes of improving the department's weak performance.
e. increasing the amount of space allocated to this category, since it has a very good space productivity index.
Answer: E
a. is typically done when designing a new store's space allocations.
b. reports on the ability of space allocations to maximize the quantities of merchandise carried.
c. analyzes the amount of shelf space allocated to particular individual brands across several departments.
d. measures the percentage of the store's total gross margin from a particular category to the category's percentage of total space utilized.
e. is based on industry or trade association data.
Answer: D
a. Target marketing
b. Microretailing
c. Stack-outs
d. Shrinkage
e. Merchandise planning
Answer: B
a. Endcaps
b. Secondary shelves
c. Circulators
d. Spine racks
e. Stack-outs
Answer: E
a. deciding what price should be used.
b. analyzing how the available store space should be allocated to various departments.
c. determining how customers circulate through the store after entering through every possible entrance.
d. determining where shoplifting is most likely to occur.
e. deciding where to put the nonselling areas.
Answer: B
a. maximize customer access to high-profit items
b. evenly divide floor space between the five functional areas
c. make the largest possible amount of space available to hold merchandise and be shopable
d. allow for the rapid restocking of valuable shelf space in high-turnover merchandise categories
e. design a store which maximizes back room stock capacity
Answer: C
a. means the store is operating at a loss.
b. can be easily tracked.
c. means the store's turnover rate is too high.
d. detracts from space productivity.
e. is anything above .5 percent.
Answer: D
a. insufficient staging space for large shipments of advertised products.
b. open spaces on the selling floor, even if the product is on hand.
c. uncluttered and organized aisles, hallways and stockrooms.
d. sales lag expectations for specific locations where space or fixtures are a known issue.
e. off-site storage or multiple stockrooms required for a single commodity.
Answer: C
a. the process of deciding what price zones should be placed next to each other.
b. planning budgets, promotions, and specific activities for each department over a given period of time.
c. the activities associated with the planning of store lighting, designs, colors, and other elements of the store environment.
d. where merchandise and customer service departments are located, how customers circulate through the store, and how much space is dedicated to each department.
e. planning merchandise mixes, prices, and inventory for each department in a store.
Answer: D
a. 5
b. 10
c. 25
d. 40
e. 50
Answer: C
a. the higher their evaluation of the store."
b. the higher the store's average price per unit."
c. the more they tend to buy."
d. the lower the store's average price per unit."
e. the more crammed the store's appearance will be."
Answer: C
a. Miscellaneous
b. Unaccounted for
c. Shrinkage
d. Grossed
e. Lost
Answer: C
a. Merchandising
b. Productivity
c. Store design
d. Store planning
e. Visual communications
Answer: C
a. Merchandising
b. Productivity
c. Store design
d. Store planning
e. Visual communications
Answer: E
a. deciding what graphics to use.
b. how to allocate the store's space.
c. deciding what type of fixtures to use.
d. deciding what type of lighting to use.
e. designing the logo.
Answer: B
a. is no longer used due to space constraints.
b. enhances store sales because face-out presentation allows the retailer to stock more titles.
c. creates a discount store atmosphere.
d. results in a consumer perception of cramming a huge selection of titles at low prices.
e. creates the image of a specialty book boutique that carries a limited selection of exclusive titles and is therefore a rather pricey place to shop.
Answer: E
a. The store's personnel
b. The store's price points
c. The store's promotional campaign
d. The store's merchandise
e. The store itself
Answer: E
a. Merchandise presentation and merchandise description
b. Store image and space productivity
c. Visual communications and store planning
d. Store design and merchandising
e. Microretailing and space productivity index
Answer: A
a. Effective sales management; creating a distinctive ambience
b. Creative merchandise presentation; effective store traffic control
c. Maximizing impulse purchase opportunities; effective shelf space allocation
d. Creating the desired store image; increasing space productivity
e. Maintaining a pleasant selling environment; effective merchandise control
Answer: D
a. customer shoplifting.
b. markdowns.
c. bookkeeping errors.
d. too high of markups.
e. employee discounts.
Answer: C
a. $50,000
b. $70,000
c. $100,000
d. $130,000
e. $180,000
Answer: C
a. Physical inventories using retail prices are subject to more error
b. Inventories need to be taken in order to prepare the accounting statements
c. Physical inventories take long periods of time to complete
d. It provides an automatic, conservative valuation of ending inventory
e. Heavy reliance on bookkeeping activities
Answer: D
a. revenue
b. retail
c. LIFO
d. FIFO
e. inflationary accounting
Answer: D
a. Determine planned sales
b. Calculate reductions from retail value
c. Convert adjusted retail book inventory to cost
d. Determine planned purchases at cost
e. Determine the cost complement's inverse
Answer: B
a. $490,000
b. $483,000
c. $485,000
d. $693,000
e. $695,000
Answer: B
a. Inventory reductions
b. Discounts to cost
c. Cost allocations
d. Shortages
e. Overages
Answer: D
a. excess profits.
b. shortages.
c. overages.
d. markups.
e. inventory gains.
Answer: C
a. Paying for merchandise
b. Rent expense
c. Utilities expense
d. Paying dividends
e. Sale of fixed assets
Answer: E
a. Cash sales
b. Taxes
c. Collecting accounts receivable
d. Collecting notes receivable
e. Sale of stock
Answer: B
a. A grocery store
b. A antique furniture store
c. A full-line department store
d. A discount department store
e. A bakery
Answer: B
a. 36.6 cents
b. 42.3 cents
c. 57.7 cents
d. 73.3 cents
e. $1.73
Answer: C
a. $12,000
b. $38,500
c. $82,850
d. $121,350
e. $178,900
Answer: C
a. notes payable within the six months.
b. payroll payable.
c. mortgage payable.
d. accounts payable.
e. taxes payable.
Answer: C
a. Notes payable
b. Payroll payable
c. Mortgage payable
d. Accounts payable
e. Taxes payable
Answer: D
a. lists all income and expenses for a given time period.
b. involves forecasting the cash value of the retailer's inventory.
c. involves forecasting the present value of accounts receivable.
d. explains the changes in cash and cash equivalents from one accounting period to the next by showing all cash inflows and all cash outflows for the given time period.
e. shows if the firm made money over a given time period.
Answer: D
a. Total assets
b. Accounts receivable
c. Current assets
d. Operating expenses
e. Prepaid expenses
Answer: B
a. Total assets
b. Accounts receivable
c. Current assets
d. Operating expenses
e. Prepaid expenses
Answer: E
a. Prepaid expenses
b. Cash
c. Goodwill
d. Inventory
e. Accounts payable
Answer: C
a. goodwill
b. asset
c. account receivable
d. liability
e. cost of goods sold
Answer: D
a. profit = sales - reductions.
b. net worth = operating profit - operating expenses.
c. net worth = assets - expenses.
d. assets = liabilities + net worth.
e. assets = sales - expenses.
Answer: D
a. buildings
b. fixtures
c. equipment
d. inventory
e. parking lots for customer use
Answer: D
a. cash and noncash.
b. stable and unstable.
c. current and noncurrent.
d. temporary and permanent.
e. liquid and fixed.
Answer: C
a. cash
b. inventory
c. accounts receivable
d. prepaid expenses
e. fixtures
Answer: E
a. Total assets
b. Return expenses
c. Current assets
d. Operating expenses
e. Prepaid expenses
Answer: D
a. net sales and returns and allowances.
b. gross margin and operating expenses.
c. gross margin and cost of goods sold.
d. cost of goods sold and returns and allowances.
e. gross sales and cost of goods sold.
Answer: B
a. Noncurrent assets
b. Cost of goods sold
c. Current liabilities
d. Net worth
e. Accounts receivable
Answer: B
a. gross margin before taxes.
b. net profit before taxes.
c. net sales before taxes.
d. gross sales before taxes.
e. operating profit before taxes.
Answer: B
a. Insurance costs
b. Costs of goods sold
c. Goodwill
d. Net sales
e. Allowances
Answer: E
a. inbound freight
b. returns and allowances
c. goodwill
d. an account receivable
e. other expenses
Answer: B
a. Gross sales
b. Operating margin
c. Cost of goods sold
d. Gross margin
e. Net sales
Answer: C
a. $64,000
b. $80,000
c. $96,000
d. $159,000
e. $191,000
Answer: B
a. $52,500
b. $72,500
c. $60,000
d. $67,500
e. $87,500
Answer: A
a. merchandise budget.
b. sales report.
c. balance sheet.
d. statement of cash flow.
e. income statement.
Answer: E
a. shows the estimated cash inflows and outflows for the period.
b. gives the retailer a summary of the firm's financial position at a given point in time.
c. is usually only prepared when the retailer is seeking to obtain a loan.
d. provides a summary of the sales and expenses for a given time period.
e. is the only financial statement that shows the retailer's retained earnings.
Answer: D
a. Gross margin
b. Operating sales
c. Return sales
d. Gross sales
e. Net sales
Answer: D
a. gross sales less returns and allowances from customers.
b. gross sales less cost of goods sold.
c. profits less cost of goods sold.
d. cost of goods sold less returns and allowances.
e. gross margin plus fixed expenses.
Answer: A
a. Planned BOM inventory
b. Planned net worth
c. Planned sales
d. Planned EOM inventory
e. Planned retail reductions
Answer: B
a. planned sales and planned reductions and BOM inventory minus planned EOM inventory.
b. planned sales and planned EOM inventory minus planned reductions and BOM inventory.
c. planned sales minus planned reductions, planned EOM inventory, and one-half BOM inventory.
d. planned sales, planned reductions, and planned EOM inventory minus BOM inventory.
e. planned sales plus planned reductions.
Answer: D
a. $22,500
b. $11,111
c. $25,000
d. $77,500
e. $27,500
Answer: E
a. $50,000
b. $75,000
c. $60,000
d. $96,000
e. $84,000
Answer: A
a. current asset
b. BOM inventory
c. stock-to-sales ratio
d. sales-to-stock ratio
e. EOM inventory
Answer: C
a. $.20 (at retail price)
b. $5 (at cost price)
c. $5 (at retail price)
d. $.20 (at cost price)
e. $50 (at cost price)
Answer: C
a. $77,000
b. $84,000
c. $161,000
d. $177,100
e. $194,100
Answer: C
a. EOM inventory for March was $136,000.
b. planned sales for the month will exceed that amount.
c. BOM inventory requirements for May will be the same.
d. BOM inventory for March was also $136,000.
e. planned sales for the next month will exceed that amount.
Answer: A
a. Planned sales percentage
b. Planned retail purchases
c. Inventory depreciation
d. Planned gross margin dollars
e. Planned EOM stock
Answer: C
a. $2,500,000.
b. $6,250,000.
c. $12,500,000.
d. $15,625,000.
e. $18,750,000.
Answer: B
a. $103,000
b. $106,000
c. $109,000
d. $109,180
e. $118,000
Answer: D
a. planned monthly BOM/EOM inventories.
b. the buyer's planned monthly gross margin.
c. planned monthly retail reductions.
d. total planned sales for the season.
e. planned purchases at retail and cost.
Answer: A
a. Retailing
b. Retail reduction analysis
c. Merchandising
d. Forecasting
e. Store management
Answer: C
a. projected sales for an upcoming season, when and how much merchandise is to be purchased, and what segments of the market to target.
b. projected sales for an upcoming season when and how much merchandise is to be purchased, and what markups and reductions will likely occur.
c. projected sales for an upcoming season, when and how much merchandise is to be purchased (excluding potential markups and reductions).
d. projected sales for an upcoming year, when and how much merchandise is to be purchased, and what reductions will likely occur.
e. projected reductions for the upcoming season.
Answer: B
a. Gross margin
b. Gross sales
c. Operating profit
d. Net profit
e. Operating margin
Answer: A
a. the budget should be prepared in advance of the selling season.
b. the language in the budget must be easy to understand.
c. the budget must plan for a relatively short period of time.
d. the budget should always seek to increase the planned gross margin over the actual gross margin from the previous season.
e. the budget should be flexible.
Answer: D
a. An implicit code of ethics is learned as employees become socialized into the organization and the corporate culture of the retailer
b. Ethics are a set of rules for moral human behavior
c. All retailers must have a written explicit code of ethics
d. When buying merchandise, the retailer can face at least four ethical dilemmas; these relate to product quality, sourcing, slotting fees, and bribery
e. Ethical standards can influence the retailer-employee relationship in three ways: misuse of company assets, job-switching, and employee theft
Answer: C
a. The manufacturer's country of origin
b. Whether to accept a slotting fee
c. The issue of product quality
d. The source of the merchandise
e. Whether to use or accept a bribe
Answer: A
a. Taxing laws
b. Unfair trade practices laws
c. Zoning laws
d. Franchise laws
e. Blue laws
Answer: B
a. Blue laws
b. Unfair trade practices
c. Fair trade laws
d. Sabbath codes
e. Shut out laws
Answer: A
a. via the Internet.
b. environmentally unsafe products.
c. door-to-door.
d. obscene material.
e. dangerous products.
Answer: C
a. Ethical regulations
b. Explicit codes of ethics
c. Implicit codes of ethics
d. Moral laws
e. Ethical standards
Answer: C
a. ties a retailer to multiple wholesalers.
b. is an agreement whereby a retailer forces a seller to offer only their strongest products or have all its products be excluded from the retailer's store.
c. ties one exclusive territory to the sale of one product.
d. requires that a retailer only buy merchandise from a certain group of suppliers.
e. exists when a seller with a strong product or service requires a buyer to purchase a weak product or service as a condition for buying the strong product or service.
Answer: E
a. engaging in an illegal exclusive distribution agreement.
b. enforcing an illegal tying agreement.
c. employing a dual distribution agreement.
d. violating the franchisee's right to fair trade.
e. enforcing a tying agreement, which courts generally consider legal as long as there is sufficient proof that these arrangements are necessary to maintain quality control.
Answer: E
a. Tying agreements
b. Trade agreements
c. Zoning laws
d. Unfair trade practices
e. Blue laws
Answer: B
a. Zoning laws
b. Franchise laws
c. Blue laws
d. Taxing laws
e. Canon laws
Answer: A
a. It may have an adverse effect on manufacturer-retailer relationships.
b. It can take place when a manufacturer opens it own retail store in a market area when it feels that the current retailers handling the product line are not doing an adequate job.
c. All dual distribution arrangements are illegal.
d. It is legal for a manufacturer to manage a corporately owned vertical marketing system that competes with independent retailers that the manufacturer also supplies.
e. It occurs when a manufacturer sells to independent retailers and also through its own retail outlets.
Answer: C