Retailing Chapter 2
Showing posts with label Retailing Chapter 2. Show all posts
Showing posts with label Retailing Chapter 2. Show all posts

Which of the following is an incorrect statement regarding strategic planning?

Which of the following is an incorrect statement regarding strategic planning?


a. A short-term commitment of resources is required by strategic planning.

b. The strategic planning process is started by assessing the external environment.

c. Effective strategic planning can aid a retailer in contending with competitors.

d. Strategic planning takes into consideration how a retailer responds to the environment.

e. Ineffective strategic planning can lead to a decrease in a retailer's level of profitability.


Answer: A

The aim of operations management is to:

The aim of operations management is to:


a. heighten customer service.

b. advance the merchandise mix.

c. maximize the performance of current operations.

d. develop more effective long-term plans.

e. increase a product's perceived value to the customer.


Answer: C

It is necessary for retail firms to strive for high-profit performance results:

It is necessary for retail firms to strive for high-profit performance results:


a. so that average operating results can be obtained even if planned results cannot be accomplished.

b. as a means of achieving the largest profit possible.

c. a retailer need not strive for high profit performance results.

d. so that new retailer entrepreneurs cannot enter the market.

e. so that the managers can be allocated larger year-end bonuses.


Answer: A

A fully-developed retail marketing strategy specifies the:

A fully-developed retail marketing strategy specifies the:


a. level of financial performance sought and mix of financial statement components.

b. specific target market sought, location, the specific retail mix to be used, and the retailer's value proposition.

c. consumer and channel member behavior.

d. prices of goods to be sold.

e. retail mix to be used, specific target market sought, and budget available.


Answer: B

If a retailer is assessing the remodeling needs of its stores, as well as evaluating the effect that the lack of a formal training program is having on the management of its establishments, the retailer is reviewing the firm's:

If a retailer is assessing the remodeling needs of its stores, as well as evaluating the effect that the lack of a formal training program is having on the management of its establishments, the retailer is reviewing the firm's:


a. strengths.

b. weaknesses.

c. opportunities.

d. threats.

e. operations.


Answer: B

Closure strategy is:

Closure strategy is:


a. often referred to as a "retailer's cost management" strategy.

b. just getting shoppers into the store.

c. getting shoppers in the store and converting them into customers at the lowest operating cost possible.

d. often referred to as a retailer's traffic strategy.

e. having the right merchandise, using the right layout and display, and having the right sales force.


Answer: E

A "retailer's cost management" strategy refers to:

A "retailer's cost management" strategy refers to:


a. getting shoppers into the store.

b. having the right merchandise, using the right layout and display, and having the right sales force.

c. the small size of the retailers' stores which gives these advantages in negotiating leases in an industry with a surplus of stores, thus reducing their operating costs.

d. having a low marginal cost, where the cost of selling one more unit does not significantly impact total costs, thus making them want to maximize revenue.

e. getting shoppers and converting them into customers at the lowest operating cost possible that is consistent with the level of service that customers expect.


Answer: E

Chandler Markus is the store manager for a large discount drugstore. Chandler allows his department managers to arrange the fixtures and schedule their employees as they see fit. According to Chandler's actions, the drugstore has set what kind of objective?

Chandler Markus is the store manager for a large discount drugstore. Chandler allows his department managers to arrange the fixtures and schedule their employees as they see fit. According to Chandler's actions, the drugstore has set what kind of objective?


a. Benefactor objective

b. Power and authority objective

c. Space productivity objective

d. Employee-centered objective

e. Employee empowerment


Answer: B

Which of the following refers to a retailer's "traffic strategy"?

Which of the following refers to a retailer's "traffic strategy"?


a. Having the right merchandise, using the right layout and display, and having the right sales force

b. Providing the appropriate level of service that the customers expect

c. Getting shoppers and converting them into customers at the lowest operating cost possible

d. Converting shoppers into customers by having them purchase merchandise

e. Getting shoppers into the store


Answer: E

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