Retail Management Exam Questions with Verified Answers Latest Update 2024

Retail Management Exam Questions with Verified Answers Latest Update 2024 Formal buying organizations are most likely to be found in small independent retailers. True or false - Answers False Traffic builders are valuable in that they can generate customers for the overall store. True or false - Answers True Strong private (dealer) brands enable retailers to exercise greater channel control over manufacturers and wholesalers. True or false - Answers True An important source of information about consumer demand is the want book or want slip. True or false - Answers True A comprehensive store security program needs to concentrate on losses due to employee, customer and vendor theft. True or false - Answers True A significant disadvantage to the retail method of accounting is the required detailed bookkeeping system. True or false - Answers True A market skimming strategy is most appropriate when customers are highly sensitive to price and when low prices discourage actual and potential competition. True or false - Answers False In bait and switch advertising the retail advertiser has no intention of selling the advertised item at the advertised price. True or false - Answers True A retailer has raised the price of children's gloves from $5 to $6. It expects annual demand to decrease from 1,000 units to 700 units. Therefore, demand is inelastic. True or false - Answers False A retailer can buy a calculator for $2.50 and wants to obtain a 50 percent markup at retail. The retailer should charge a $3.75 retail price. True or false - Answers False Merchandising includes A) All the steps in the buying and selling of products B) The purchasing of products but not the sale of them C) Pricing and product assortment decisions only D) Cooperative buying arrangements only - Answers A In which strategy does a retailer adjust its self-space allocations to respond to customer and other differences among local markets? A) Micro merchandising B) Concentrated marketing C) Cross merchandising D) Niche marketing - Answers A All purchases originate from one office in a ________ buying organization? A) Centralized B) Decentralized C) Informal D)Inside - Answers A The expected retail sales of a product or product category for given time periods is a ________? A) Sales expectation B) Sales perception C) Sales analysis D) Forcast - Answers D The regular products carried by a retailer constitute ______merchandise. A) Fashion B) Staple C) Assortment D) Fad - Answers B A vertical fashion trend occurs when a fashion is________. A) Passed from the lower to the upper classes B) Accepted by the general public while retaining its basic form C) Accepted by one market segment only D) Accepted by an upscale market segment, but undergoes basic changes before its sold to the general public - Answers D Unbranded no frills foods are classified as ____ A) Generics B) Private brands C) Manufacturer brands D) Scrambled merchandise - Answers A Which of the following productivity measure would not be part of category management? A) Sales per capita B) Sales per linear foot of shelf space C) Direct product profitability D) Return on inventory investment - Answers A Retail price competition is generally greatest in which stage of the traditional product life cycle? A) Introduction B) Competition C) Growth D) Maturity - Answers D One stop shopping, no disappointment customers and appeal to a broad market are the advantages to which trail assortment strategy? A) Narrow and shallow B) Narrow and deep C) Wide and deep D) Wide and shallow - Answers C Cross merchandising is most effectively used int he sale of______. A) Private brands B) Substitute goods C) Generic brands D) Complementary goods - Answers D Category management is a strategy that is used to improve a retailers_____ A) Shelf space productivity