Retail Industry Final Exam

RETAIL INDUSTRY FINAL EXAM QUESTIONS AND
CORRECT SOLUTIONS



definition_and_concept_of_"merchandise_management_-
_answersthe_process_by_which_a_retailer_attempts_to_offer_the_right_quantity_of_the_
right_merchandise_in_the_right_place_at_the_right_time_and_meet_the_company's_finan
cial_goals.



definition_and_concept_of_"category_captain"_-
_answersThe_vendor_who_works_with_the_retailer_to_develop_a_better_understanding_
of_shopping_behavior,_create_assortments_that_satisfy_consumer_needs,_and_improve_t
he_profitability_of_the_merchandise_category.



definition_and_concept_of_"national_brands."_-
_answersalso_known_as_manufacturer's_brands,_are_products_designed,_produced_and_
marked_by_a_vendor_and_sold_to_many_different_retailers.



definition_and_concept_of_"copycat_brands._-
_answersimitates_the_manufacturer's_brand_in_appearance_and_packaging,_generally_ar
e_perceived_as_lower-quality_and_are_offered_at_lower_prices.



advantages_of_private-label_merchandise_for_a_retailer_-
_answersLess_expensive_to_make

Offer_better_markup

Exclusive_

Cannot_be_compared_on_price

May_be_targeted_to_niches

,concept_of_"trade_shows"_(page_348)._-
_answersProvide_another_opportunity_for_buyers_to_see_the_latest_products_and_styles
_and_interact_with_vendors.



costs_associated_with_global_sourcing_decisions,_including_tariffs_and_quality_control,_
market

timing,_and_other_managerial_issues_associated_with_global_sourcing_-
_answersTariffs_or_duties:_taxes_collected_by_a_government_on_imports



legal_and_ethical_issue_of_"counterfeit_merchandise"_(review_the_"Counterfeit_Merchan
dise"

section_on_pages_362_and_363)._-
_answersgoods_made_and_sold_without_the_permission_of_the_owner_or_a_trademark
_or_copyright.



definition_and_concept_of_"brand_equity"_-
_answersThe_value_that_a_brand_image_offers_retailers_is_referred_to_as_brand_equity.



concept_of_"top-of-mind_awareness."_-
_answersthe_highest_level_of_awareness,_occurs_when_consumers_mention_a_specific_b
rand_name_first_when_they_are_asked_about_the_type_of_retailer,_or_merchandise_cat
egory,_or_a_type_of_service.



what_a_retailer_needs_to_do_to_build_brand_equity_of_its_private-
label_merchandise_(review_the

"Building_Brand_Equity"_section_on_pages_402_through_405)._-
_answersCreate_a_high_level_of_brand_awareness_,_(2)_develop_favorable_associations_
with_the_brand_name,_and_(3)_consistently_reinforce_the_image_of_the_brand.

, definition_and_concept_of_"brand_image"_-
_answersConsists_of_a_set_associations_that_are_usually_organized_around_some_meani
ngful_themes.



concept_of_"integrated_marketing_communication_program"_as_a_method_of_delivering
_a

consistent_message_(page_403)._-
_answersA_program_that_integrates_all_the_communication_elements_to_deliver_a_com
prehensive,_consistent_message_to_all_customers_over_time,_across_all_elements_of_th
eir_retail_mix,_and_across_all_delivery_channels.



definition_and_concept_of_"marginal_analysis"_-
_answersIs_based_on_the_economic_principle_that_firms_should_increase_communicatio
n_expenditures_as_long_as_each_additional_dollar_spent_generates_more_than_a_dollar
_of_additional_contribution.



why_it_is_important_for_stores_to_be_designed_with_flexibility_in_mind_-
_answersreduces_cost.



concept_of_the_"racetrack_layout"_(page_475)._-
_answersalso_known_as_a_loop,_is_a_store_layout_that_provides_a_major_aisle_that_loo
ps_around_the_store_to_guide_customer_traffic_around_different_departments_within_th
e_store.



concept_of_the_"promotional_aisle_or_area"_-
_answersA_space_used_to_display_merchandise_that_is_being_promoted.



definition_and_concept_of_"planogram"_-
_answersa_diagram_that_shows_how_and_where_specific_SKU's_should_be_placed_on_r
etail_shelves_or_displays_to_increase_customer_purchases.