1. _______, a form of discrimination, occurs when an unqualified man receives a promotion rather than a
qualified female applicant.
A. Disparate impact
B. Desperate measures
C. Minority impact
D. Disparate treatment
2. On the basis of analysis of historical sales, gross margins, turnover, the sizes of product packaging for
each SKU, and the retailer's design criteria, a software can determines the optimal shelf space and location
for each SKU. This describes the process of creating an effective
A. placement plan.
B. merchandise plan.
C. allocation plan.
3. Mercer was getting bored with his job as a sales clerk in the home department until his manager gave
him responsibility for training a new salesperson in his area which he likes to do. This is an example of
A. the unity of command principle.
B. an extrinsic reward.
C. an intrinsic reward.
D. management by objective.
4. Clarissa's department had the worst sales performance in months. She was confident that she had quality
merchandise and satisfied employees, so she should concentrate her efforts on
A. autocratic behaviors.
B. hiring mature employees.
C. task performance behaviors.
D. group maintenance behaviors.
5. The difference between the service aspect and the merchandise aspect of the retail offering is _______
caused by intangibility of service.
6. The accounting records for Sports-R-Us, a superstore targeted to armchair athletes, showed that it had
bought and received $1,830,000 worth of merchandise. An actual count of the merchandise in the store
showed only $1,644,000 worth of merchandise in stock. What other information is needed to calculate
A. The store's annual profit
B. The store's inventory turnover rate
C. The store's profit margin
D. The store's retail sales during the period
7. Marcel works in the linen department of a large department store. When a customer arrived Friday
morning to pick up a Thanksgiving tablecloth she had specially ordered, she was disappointed to find
deliveries were late, and the cloth had not yet arrived. She was planning to use it at a Thanksgiving
gathering at her home this weekend. Marcel was able to use empowerment to bridge the _______ gap by
offering to bring the tablecloth to her home himself as soon as it arrived at the store.
8. A diagram that shows how and where specific products should be placed on retail shelves or displays to
increase customer purchases is called a/an
A. allocation plan.
B. merchandise plan.
C. placement plan.
9. Which of the following is not considered an objective to be met when designing a store?
A. The design should recognize the needs of the disabled.
B. The design should be flexible.
C. The design should be inexpensive.
D. The design should be consistent with image and strategy.
10. Which of the following statements about the use of scent to change or augment the atmospherics in a
store is true?
A. There are no ethnic differences in the way scents are received and decoded.
B. The gender of the target market should be used to determine the intensity of the scent.
C. The age of the target market does not affect the way scents are received and decoded.
D. The methods used to introduce scent into a store are relatively expensive.
11. To make sure its customers noticed the new shipment of cigars, a specialty store could focus spotlights
on the merchandise and use the lights to draw customers to the humidors. This is an example of
A. popping the merchandise.
B. illuminating the merchandise.
D. attention focusing.
12. You're an employee in accessories of a department store. A customer complains about your lack of silk
scarves after she saw an advertisement in the newspaper. You are unable to provide a tangible restitution as
you aren't management. Knowing the concept of procedural fairness, what else could you do to satisfy
A. Offer a rain check.
B. Make a note to the manager in front of the customer about the lack of merchandise.
C. Take their name and number and call them when the next shipment arrives.
D. Call other stores to see if it is in stock and direct the customer to the other store.
13. When Joe visited Crate and Barrel, he was surprised to see tea cups displayed up a wall almost to the
ceiling. What type of attention getting display is Crate and Barrel using for the tea cups?
A. Point of purchase
B. Feature area
D. Window display
14. Dana is planning on redoing her kitchen. When she went into the home improvement store, she
admired the various kitchens the store has set up. Each kitchen used a different style and color scheme,
and allowed Dana to consider the possible formats she could use. The home-improvement store had used
a/an _______ presentation.
15. Which of the following does not describe appropriate space management?
A. A retailer over allocates space to some low productivity categories such as milk because an extensive assortment in these
categories attracts customers to the store and positively affects the sales of categories with higher GMROIs.
B. A retailer over allocates space to categories purchased by their platinum customers, the customers with the highest lifetime
C. Less is allocated to fast selling merchandise to allow more shelf space to encourage sales of slower moving items.
D. Merchandise categories with high GMROI's merit more space than merchandise categories with lower GMROI's do.
16. Garrett can't seem to find anyone to hire for a front-line person in his McDonald's franchise. What
would be the most effective way to get out of his recruiting "slump"?
A. Advertise on Monster.com
B. Offer his current staff $100 for the best candidate referral that turns into a hire
C. Advertise in the local paper for frontline personnel
D. Put a "help wanted" sign outside of the restaurant
End of exam
17. Which of the following is the major cost controlled by a store manager?
A. Special events
B. Vendor fees
C. Compensation and benefits for employees
D. Advertising on local radio
18. Moselle was upset as to the service she received when she was trying to purchase a new handbag.
First, the salesperson seemed preoccupied with a conversation with another associate and when she finally
recognized Moselle, she was nowhere to be found when Moselle wanted to make a purchase. Moselle
plans to make a formal complaint to management. What can a manager do to recover from this service
A. Make sure there are plenty of sales associates at all times.
B. Encourage the customer to complain by listening without interruption.
C. Give the handbag to Moselle for free to show commitment to high-quality customer service.
D. Fire the sales associate to reduce service recovery damage.
19. To motivate its employees, Dillard's department store has set performance goals for its employees. If
an employee exceeds his or her daily performance goals, he or she will receive a bonus. This compensation
method is called a
A. task-oriented plan.
B. quota-bonus plan.
C. straight bonus plan.
D. participative allowance.
20. Which of the following does not describe aspects of grid layout?
A. It is cost efficient.
B. It provides a visually exciting design.
C. It is well suited for shopping trips in which customers need to move throughout the entire store and quickly locate products
they want to buy.
D. It is well suited for grocery retailers.
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