Retail Management Final Exam
Questions and Answers23
Category management and category captains - ANSWERS -Category Management: approach to
managing merchandise; assigns one buyer or category manager to oversee all merchandising
activities for the entire category
-this can help ensure that a store's assortment includes the best combo of sizes and vendors
Category Captains: the vendor who works with the retailer to develop a better understanding of
consumer shopping behaviors, create assortments that satisfy customer needs and improve the
profitability of the merchandise category
National Brands vs Private Label - ANSWERS -National Brands/manufacturer brands:
products designed, produced and marketed by a vendor and sold to many different retailers
Private label/store brands/house brands:
products developed by retailers
* enhance and expand assortment
Pricing Strategies - ANSWERS --High/Low Pricing
higher profits, more excitement, build ST sales and generate profit
-Everyday low pricing
assure customers low prices, better SCM, reduces advertising and operating expenses, reduces
stockouts
,IMC Components - ANSWERS -mass media advertising, sales promotion, personal selling, PR,
online media, social media, in-store marketing
What are store managers responsible for? - ANSWERS -Employees and real estate
Steps in Employment Management Process - ANSWERS -1. Recruit and select employees
2. Socialize and train new employees
3. Motivate and manage employees to achieve store performance goals
4. Evaluate employee performance and provide feedback
5. Compensate and reward employees
What is a managers' most important but also frustrating task? - ANSWERS -Motivating
employees
Employee performance improves when employees feel: - ANSWERS --That their efforts will
enable them to achieve the goals set for them by their managers.
-That they'll receive rewards they value if they achieve their goals.
Who should do the evaluation? - ANSWERS --System designed by HR
-Done by immediate supervisors
How often should evaluations be made? - ANSWERS -annually or semiannually
Extrinsic Rewards - ANSWERS -rewards provided by either the employee's manager or the firm
such as compensation, promotion, and recognition
A la carte plans - ANSWERS -Give employees a choice of rewards for their good performance
, Intrinsic Rewards - ANSWERS -Rewards employees get personally from doing a job well done
because they think it is challenging and fun
Job enrichment - ANSWERS -the redesign of a job to include a greater range of tasks and
responsibilities
When is a compensation plan effective? - ANSWERS -When the employees feel the plan is fair
and that the compensation is related to their efforts
Types of compensation plans - ANSWERS --Straight Salary Compensation
-Incentive compensation plans
(straight commission or quota bonus)
-Group (Team) incentives
Two Elements to compensation plan - ANSWERS -1. the amount of compensation
2. the percentage of compensation based on incentives
When is incentive compensation most effective? - ANSWERS -When performance can be
measured easily and precisely
(Difficult to measure teamwork, nonselling activities, customer service, merchandising
performance)
Why have individualized motivation programs? - ANSWERS --Impact of goals differs across
people
-Different people seek different rewards
How can a manager maintain morale? - ANSWERS --Meetings before store opening
Questions and Answers23
Category management and category captains - ANSWERS -Category Management: approach to
managing merchandise; assigns one buyer or category manager to oversee all merchandising
activities for the entire category
-this can help ensure that a store's assortment includes the best combo of sizes and vendors
Category Captains: the vendor who works with the retailer to develop a better understanding of
consumer shopping behaviors, create assortments that satisfy customer needs and improve the
profitability of the merchandise category
National Brands vs Private Label - ANSWERS -National Brands/manufacturer brands:
products designed, produced and marketed by a vendor and sold to many different retailers
Private label/store brands/house brands:
products developed by retailers
* enhance and expand assortment
Pricing Strategies - ANSWERS --High/Low Pricing
higher profits, more excitement, build ST sales and generate profit
-Everyday low pricing
assure customers low prices, better SCM, reduces advertising and operating expenses, reduces
stockouts
,IMC Components - ANSWERS -mass media advertising, sales promotion, personal selling, PR,
online media, social media, in-store marketing
What are store managers responsible for? - ANSWERS -Employees and real estate
Steps in Employment Management Process - ANSWERS -1. Recruit and select employees
2. Socialize and train new employees
3. Motivate and manage employees to achieve store performance goals
4. Evaluate employee performance and provide feedback
5. Compensate and reward employees
What is a managers' most important but also frustrating task? - ANSWERS -Motivating
employees
Employee performance improves when employees feel: - ANSWERS --That their efforts will
enable them to achieve the goals set for them by their managers.
-That they'll receive rewards they value if they achieve their goals.
Who should do the evaluation? - ANSWERS --System designed by HR
-Done by immediate supervisors
How often should evaluations be made? - ANSWERS -annually or semiannually
Extrinsic Rewards - ANSWERS -rewards provided by either the employee's manager or the firm
such as compensation, promotion, and recognition
A la carte plans - ANSWERS -Give employees a choice of rewards for their good performance
, Intrinsic Rewards - ANSWERS -Rewards employees get personally from doing a job well done
because they think it is challenging and fun
Job enrichment - ANSWERS -the redesign of a job to include a greater range of tasks and
responsibilities
When is a compensation plan effective? - ANSWERS -When the employees feel the plan is fair
and that the compensation is related to their efforts
Types of compensation plans - ANSWERS --Straight Salary Compensation
-Incentive compensation plans
(straight commission or quota bonus)
-Group (Team) incentives
Two Elements to compensation plan - ANSWERS -1. the amount of compensation
2. the percentage of compensation based on incentives
When is incentive compensation most effective? - ANSWERS -When performance can be
measured easily and precisely
(Difficult to measure teamwork, nonselling activities, customer service, merchandising
performance)
Why have individualized motivation programs? - ANSWERS --Impact of goals differs across
people
-Different people seek different rewards
How can a manager maintain morale? - ANSWERS --Meetings before store opening
