Recording a customer's communication style in CRM software can help a salesperson:

Recording a customer's communication style in CRM software can help a salesperson:


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

The immature characteristics of each style are:

The immature characteristics of each style are:


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

An effective way to minimize communication-style bias is to:

An effective way to minimize communication-style bias is to:


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

If you have a preferred communication style, you will:

If you have a preferred communication style, you will:


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

For each person, one of the four styles is usually:

For each person, one of the four styles is usually:


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

The four-style model is:

The four-style model is:


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

The words "aloof" and "stuffy" describe which side of which of the following styles?

The words "aloof" and "stuffy" describe which side of which of the following styles?


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 customer who is higher in dominance tends to do which of the following?

A customer who is higher in dominance tends to do which of the following?


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

Which of the following is an accurate statement regarding the communication-style model?

Which of the following is an accurate statement regarding the communication-style model?


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

All of the following are major principles supporting communication style theory EXCEPT:

All of the following are major principles supporting communication style theory EXCEPT:


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

Which of the following is true about our individual communication style?

Which of the following is true about our individual communication style?


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

Communication-style bias is most likely to occur when which of the following occurs?

Communication-style bias is most likely to occur when which of the following occurs?


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

Which of the following statements regarding communications-style bias is true?

Which of the following statements regarding communications-style bias is true?


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

Which of the following is NOT a rule of etiquette appropriate for salespeople?

Which of the following is NOT a rule of etiquette appropriate for salespeople?


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 good general rule for salespeople to follow when choosing a wardrobe for sales is which of the following?

A good general rule for salespeople to follow when choosing a wardrobe for sales is which of the following?


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

The concept of "unconscious expectations" with regard to dress is best defined by which one of the following statements?

The concept of "unconscious expectations" with regard to dress is best defined by which one of the following statements?


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

The rules about how to dress in the business community are:

The rules about how to dress in the business community are:


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

Which of the following is NOT true of eye contact during a sales call?

Which of the following is NOT true of eye contact during a sales call?


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

Research in the field of communications reveals that:

Research in the field of communications reveals that:


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

Research indicates that when two people communicate, nonverbal messages convey:

Research indicates that when two people communicate, nonverbal messages convey:


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

The win-win strategy can best be summed up as which of the following statements?

The win-win strategy can best be summed up as which of the following statements?


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

Which of the following is a practical approach to improving your self-image?

Which of the following is a practical approach to improving your self-image?


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

Which of the following would be considered a secondary decision-maker?

Which of the following would be considered a secondary decision-maker?


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

According to Larry Wilson, there are three keys to a partnering relationship. To establish a partnership with a customer, he suggests all of the following EXCEPT:

According to Larry Wilson, there are three keys to a partnering relationship. To establish a partnership with a customer, he suggests all of the following EXCEPT:


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

Salespeople today are encouraged to think in terms of:

Salespeople today are encouraged to think in terms of:


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 training and education initiative with specific requirements delivered by an industry oversight organization to salespeople in that industry is an example of a(n):

A training and education initiative with specific requirements delivered by an industry oversight organization to salespeople in that industry is an example of a(n):


A) university sales methods class


B) corporate-sponsored training class


C) internet-based training program


D) certification program


E) college concentration


Answer: D

Commercial vendors who provide sales training offer courses based on:

Commercial vendors who provide sales training offer courses based on:


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

Corporate-sponsored sales training can include all of the following EXCEPT:

Corporate-sponsored sales training can include all of the following EXCEPT:


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

Network (multilevel) marketing is different from traditional sales in that it:

Network (multilevel) marketing is different from traditional sales in that it:


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

Well-trained salespeople can add value to the traditional retail shopping experience. Selling for a retailer might involve which of the following products?

Well-trained salespeople can add value to the traditional retail shopping experience. Selling for a retailer might involve which of the following products?


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

Terri Milano, employed by a manufacturer of home electronics, offers assistance to retailers in such areas as credit policies, pricing display and store layout. She also collects information regarding acceptance of her firm's products. She is performing the duties of a(n):

Terri Milano, employed by a manufacturer of home electronics, offers assistance to retailers in such areas as credit policies, pricing display and store layout. She also collects information regarding acceptance of her firm's products. She is performing the duties of a(n):


A) detail salesperson


B) retail salesperson


C) inside salesperson


D) field representative


E) manufacturer's representative


Answer: A

Sales engineers are people with extensive knowledge of their product who also:

Sales engineers are people with extensive knowledge of their product who also:



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

What event contributed most to the increased need for telecommunications salespeople?

What event contributed most to the increased need for telecommunications salespeople?


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

Sales opportunities in the service sector are expanding because:

Sales opportunities in the service sector are expanding because:


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

Trade selling and missionary (detail) sales are both examples of sales:

Trade selling and missionary (detail) sales are both examples of sales:


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

In a well-structured sales department, inside and outside salespeople often:

In a well-structured sales department, inside and outside salespeople often:


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

There is a pay gap between men and women in the field of sales, with men earning more than women do. Despite this, sales represents an excellent financial opportunity for women for which of the following reasons?

There is a pay gap between men and women in the field of sales, with men earning more than women do. Despite this, sales represents an excellent financial opportunity for women for which of the following reasons?


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

Salespeople have an advantage over workers in other positions when being considered for promotion to positions of greater responsibilities because:

Salespeople have an advantage over workers in other positions when being considered for promotion to positions of greater responsibilities because:


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

Psychic income in selling refers to which one of the following?

Psychic income in selling refers to which one of the following?



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

Which of the following trends in sales has led to an increase in both the education and skills a salesperson needs?

Which of the following trends in sales has led to an increase in both the education and skills a salesperson needs?


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

Convincing potential donors to support charities financially is an example of:

Convincing potential donors to support charities financially is an example of:


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

The CEO of SwiftLink spends one week each month going to sales appointments with various salespeople in the company. In addition to assisting the salespeople with presentations, a likely reason the CEO goes on sales calls is:

The CEO of SwiftLink spends one week each month going to sales appointments with various salespeople in the company. In addition to assisting the salespeople with presentations, a likely reason the CEO goes on sales calls is:


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

The CEO of SwiftLink spends one week each month going to sales appointments with various salespeople in the company. In addition to assisting the salespeople with presentations, a likely reason the CEO goes on sales calls is:

The CEO of SwiftLink spends one week each month going to sales appointments with various salespeople in the company. In addition to assisting the salespeople with presentations, a likely reason the CEO goes on sales calls is:


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

Tamara Grindel is a doctor who practices with a group of other physicians with the same specialty. She is considering taking a course on selling skills. What is the most important way in which this will help her medical practice?

Tamara Grindel is a doctor who practices with a group of other physicians with the same specialty. She is considering taking a course on selling skills. What is the most important way in which this will help her medical practice?


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

Salespeople are considered knowledge workers because:

Salespeople are considered knowledge workers because:


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

Which one of the following people would NOT be considered a "knowledge worker"?

Which one of the following people would NOT be considered a "knowledge worker"?


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

Maintaining high ethical standards:

Maintaining high ethical standards:


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

For a strategic alliance to be successful, the first step is for a company to:

For a strategic alliance to be successful, the first step is for a company to:


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

The highest form of partnering is the:

The highest form of partnering is the:


A) marketing alliance


B) value-added alliance


C) partnering alliance


D) customer partnership alliance


E) strategic selling alliance


Answer: E

Customers want quality products and:

Customers want quality products and:


A) quality relationships


B) low prices


C) free shipping


D) custom installation


E) little contact


Answer: A

The evolution of strategic selling can be traced to:

The evolution of strategic selling can be traced to:


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

The customer strategy always takes into consideration:

The customer strategy always takes into consideration:


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

Eric Villa obtained a license to sell real estate and then accepted a sales position with a local Century 21 agency. To prepare for this new position, he purchased and read a research report entitled "Buying Habits of Today's Home Buyers." Mr. Villa is attempting to develop a:

Eric Villa obtained a license to sell real estate and then accepted a sales position with a local Century 21 agency. To prepare for this new position, he purchased and read a research report entitled "Buying Habits of Today's Home Buyers." Mr. Villa is attempting to develop a:


A) presentation strategy


B) product strategy


C) customer strategy


D) relationship strategy


E) price strategy


Answer: C

Sharon Wiley is a sales representative employed by a leading producer of pharmaceuticals used in veterinary medicine. Recently she attended a university-sponsored seminar that focused on new research findings in selected areas of veterinary medicine. Ms. Wiley is attempting to develop a:

Sharon Wiley is a sales representative employed by a leading producer of pharmaceuticals used in veterinary medicine. Recently she attended a university-sponsored seminar that focused on new research findings in selected areas of veterinary medicine. Ms. Wiley is attempting to develop a:


A) relationship strategy


B) customer strategy


C) service strategy


D) presentation strategy


E) product strategy


Answer: E

In a market characterized by vigorous competition, look-alike products and customer loyalty that depends on quality relationships as well as quality products, the salesperson should fully utilize the:

In a market characterized by vigorous competition, look-alike products and customer loyalty that depends on quality relationships as well as quality products, the salesperson should fully utilize the:


A) product strategy


B) customer strategy


C) presentation strategy


D) relationship strategy


E) marketing strategy


Answer: D

The promotion element of a marketing program can be subdivided into the areas of:

The promotion element of a marketing program can be subdivided into the areas of:


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

When UPS was first established, founder Jim Casey described the firm's focus as follows:

When UPS was first established, founder Jim Casey described the firm's focus as follows:


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

Which of the following statements would NOT be an application of the marketing concept?

Which of the following statements would NOT be an application of the marketing concept?


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

The ultimate goal of the "marketing concept" is:

The ultimate goal of the "marketing concept" is:


A) product diversification


B) customer satisfaction


C) brand loyalty


D) rising profit margins


E) efficiency of production


Answer: B

Which of the following statements accurately describes value-added selling?

Which of the following statements accurately describes value-added selling?


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 major development that has helped the information economy is:

A major development that has helped the information economy is:


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

The development of a personal selling philosophy involves all of the following EXCEPT:

The development of a personal selling philosophy involves all of the following EXCEPT:


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

The term product should be broadly interpreted to encompass:

The term product should be broadly interpreted to encompass:


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

In general, the largest in-store signage is usually:

In general, the largest in-store signage is usually:


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

Visual communications in retailing have become especially important because:

Visual communications in retailing have become especially important because:


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

Which of the following statements about sensory marketing is true?

Which of the following statements about sensory marketing is true?


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

Which of the following is NOT a characteristic of an effective visual merchandising display?

Which of the following is NOT a characteristic of an effective visual merchandising display?


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

Visual merchandising is:

Visual merchandising is:


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

Which of the following is a good guideline to use when selecting fixtures for your store?

Which of the following is a good guideline to use when selecting fixtures for your store?


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

Which of the following is NOT an example of the "psychology of merchandise presentation"?

Which of the following is NOT an example of the "psychology of merchandise presentation"?


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

The "psychology of merchandise presentation" refers to the fact that:

The "psychology of merchandise presentation" refers to the fact that:


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

The primary problem with the pegging method of merchandise presentation is that it:

The primary problem with the pegging method of merchandise presentation is that it:


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

The chief advantage of a round rack is:

The chief advantage of a round rack is:


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

The two basic types of merchandise presentation are:

The two basic types of merchandise presentation are:


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

Most shoplifting takes place in:

Most shoplifting takes place in:


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

The best example of the spine layout is found in:

The best example of the spine layout is found in:


a. automobile showrooms.

b. discount department stores.

c. drugstores.

d. medium-sized specialty stores.

e. discount furniture stores.


Answer: D

A major benefit of the loop layout is that it:

A major benefit of the loop layout is that it:


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

The free-flow layout does NOT work well in large department stores or other stores offering a great variety of merchandise because:

The free-flow layout does NOT work well in large department stores or other stores offering a great variety of merchandise because:


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

The four basic types of layout that retailers use today are:

The four basic types of layout that retailers use today are:


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

According to the late retail consultant Robert Kahn, many retailers mistakenly believed that simply placing more products in a store increased sales per square foot. Kahn indicated that higher sales per square foot could be explained by understanding basic consumer behavior. Kahn's rationale can best be understood through the formula: sales per square foot equals:

According to the late retail consultant Robert Kahn, many retailers mistakenly believed that simply placing more products in a store increased sales per square foot. Kahn indicated that higher sales per square foot could be explained by understanding basic consumer behavior. Kahn's rationale can best be understood through the formula: sales per square foot equals:


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 store manager notes that the space productivity index for a particular product category is 1.35. Based on this information, the manager should consider:

A store manager notes that the space productivity index for a particular product category is 1.35. Based on this information, the manager should consider:


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 space productivity index:

A space productivity index:


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

The first step when developing a floor plan is:

The first step when developing a floor plan is:


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

The goal of space allocation is to:

The goal of space allocation is to:


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

High shrinkage:

High shrinkage:


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

All of the following are warning signs that a retailer has a space problem EXCEPT:

All of the following are warning signs that a retailer has a space problem EXCEPT:


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

The term "floor plan" in retailing refers to:

The term "floor plan" in retailing refers to:


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 simple but powerful truism in retailing is: "The more merchandise customers are exposed to that is presented in an orderly manner:

A simple but powerful truism in retailing is: "The more merchandise customers are exposed to that is presented in an orderly manner:


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

The first decision the retailer must make in planning a store is:

The first decision the retailer must make in planning a store is:


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

The presentation of merchandise is a critical factor in the selling power of a store and its overall image. For bookstores, a face-out merchandise presentation of books as opposed to spine-out presentation:

The presentation of merchandise is a critical factor in the selling power of a store and its overall image. For bookstores, a face-out merchandise presentation of books as opposed to spine-out presentation:


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

Since online customers browse frequently, which are the two aspects to be considered in keeping the content current?

Since online customers browse frequently, which are the two aspects to be considered in keeping the content current?


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

____ and _____ are the two primary objectives of the store environment.

____ and _____ are the two primary objectives of the store environment.


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

Fashion Barn's total cost valuation of inventory is $120,000 and its total retail valuation is $300,000. The adjusted retail book inventory figure has been determined to be $250,000. Using the retail method of inventory valuation, what would be Fashion Barn's approximate closing inventory figure at cost?

Fashion Barn's total cost valuation of inventory is $120,000 and its total retail valuation is $300,000. The adjusted retail book inventory figure has been determined to be $250,000. Using the retail method of inventory valuation, what would be Fashion Barn's approximate closing inventory figure at cost?


a. $50,000

b. $70,000

c. $100,000

d. $130,000

e. $180,000


Answer: C

Which of the following is an advantage of using the retail method of inventory valuation versus the cost method?

Which of the following is an advantage of using the retail method of inventory valuation versus the cost method?


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

Holly's Arts and Crafts had a retail inventory available for sale of $700,000, while sales were $210,000, markdowns were $5,000 and discounts were $2,000. What is the ending inventory at retail?

Holly's Arts and Crafts had a retail inventory available for sale of $700,000, while sales were $210,000, markdowns were $5,000 and discounts were $2,000. What is the ending inventory at retail?


a. $490,000

b. $483,000

c. $485,000

d. $693,000

e. $695,000


Answer: B

Art's Appliances has accounts payable of $65,000, payroll payable of $2,750, mortgage payable of $38,500, current notes payable of $12,000, and taxes payable of $3,100. Art's current liabilities are:

Art's Appliances has accounts payable of $65,000, payroll payable of $2,750, mortgage payable of $38,500, current notes payable of $12,000, and taxes payable of $3,100. Art's current liabilities are:


a. $12,000

b. $38,500

c. $82,850

d. $121,350

e. $178,900


Answer: C

A statement of cash flow:

A statement of cash flow:


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 balance sheet can be expressed as:

A balance sheet can be expressed as:


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

Assets are classified as:

Assets are classified as:


a. cash and noncash.

b. stable and unstable.

c. current and noncurrent.

d. temporary and permanent.

e. liquid and fixed.


Answer: C

Operating profit is the difference between:

Operating profit is the difference between:


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 retailer pays taxes on its:

A retailer pays taxes on its:


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

An income statement:

An income statement:


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

Net sales are:

Net sales are:


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

Planned purchases at retail is equal to:

Planned purchases at retail is equal to:


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

If the planned sales for the month are $70,000, the merchandise budget calls for a planned stock-to-sales ratio of 2.3, and the financial leverage is 1.1, then the planned BOM inventory should be:

If the planned sales for the month are $70,000, the merchandise budget calls for a planned stock-to-sales ratio of 2.3, and the financial leverage is 1.1, then the planned BOM inventory should be:


a. $77,000

b. $84,000

c. $161,000

d. $177,100

e. $194,100


Answer: C

If a retailer's planned BOM inventory for April is $136,000, we can assume that the retailer's:

If a retailer's planned BOM inventory for April is $136,000, we can assume that the retailer's:


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

Total planned sales for the spring-summer season for the Mort's Discount Store are $25,000,000. The planned monthly sales for March is 25 percent of total planned sales. March's planned sales are:

Total planned sales for the spring-summer season for the Mort's Discount Store are $25,000,000. The planned monthly sales for March is 25 percent of total planned sales. March's planned sales are:


a. $2,500,000.

b. $6,250,000.

c. $12,500,000.

d. $15,625,000.

e. $18,750,000.


Answer: B

A merchandise budget is a plan of:

A merchandise budget is a plan of:


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

All of the following are requirements for a merchandise budget EXCEPT:

All of the following are requirements for a merchandise budget EXCEPT:


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

Which of the following statements is FALSE?

Which of the following statements is FALSE?


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

The specific content of these laws varies, but usually they prohibit the retailer from seeking wrongful advantages from vendors or selling merchandise below cost with the intent of using profits from another geographic area or from cash reserves to destroy or hurt competition.

The specific content of these laws varies, but usually they prohibit the retailer from seeking wrongful advantages from vendors or selling merchandise below cost with the intent of using profits from another geographic area or from cash reserves to destroy or hurt competition.


a. Taxing laws

b. Unfair trade practices laws

c. Zoning laws

d. Franchise laws

e. Blue laws


Answer: B

Green River Ordinances restrict selling:

Green River Ordinances restrict selling:


a. via the Internet.

b. environmentally unsafe products.

c. door-to-door.

d. obscene material.

e. dangerous products.


Answer: C

A tying agreement:

A tying agreement:


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

When Taco Bell requires its franchisees to purchase all their raw materials and supplies from the franchisor in order for the franchisor to maintain quality control, it is:

When Taco Bell requires its franchisees to purchase all their raw materials and supplies from the franchisor in order for the franchisor to maintain quality control, it is:


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

Which of the following statements about dual distribution is incorrect?

Which of the following statements about dual distribution is incorrect?


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