Retail Industry Final Exam UPDATED
Exam Questions and CORRECT Answers
definition and concept of "merchandise management - CORRECT ANSWER - the 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 financial goals.
definition and concept of "category captain" - CORRECT ANSWER - The vendor who
works with the retailer to develop a better understanding of shopping behavior, create
assortments that satisfy consumer needs, and improve the profitability of the merchandise
category.
definition and concept of "national brands." - CORRECT ANSWER - also 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. - CORRECT ANSWER - imitates the
manufacturer's brand in appearance and packaging, generally are perceived as lower-quality and
are offered at lower prices.
advantages of private-label merchandise for a retailer - CORRECT ANSWER - Less
expensive to make
Offer better markup
Exclusive
Cannot be compared on price
May be targeted to niches
concept of "trade shows" (page 348). - CORRECT ANSWER - Provide 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 - CORRECT
ANSWER - Tariffs or duties: taxes collected by a government on imports
legal and ethical issue of "counterfeit merchandise" (review the "Counterfeit Merchandise"
section on pages 362 and 363). - CORRECT ANSWER - goods made and sold without the
permission of the owner or a trademark or copyright.
definition and concept of "brand equity" - CORRECT ANSWER - The value that a brand
image offers retailers is referred to as brand equity.
concept of "top-of-mind awareness." - CORRECT ANSWER - the highest level of
awareness, occurs when consumers mention a specific brand name first when they are asked
about the type of retailer, or merchandise category, 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). - CORRECT ANSWER -
Create 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" - CORRECT ANSWER - Consists of a set
associations that are usually organized around some meaningful themes.
concept of "integrated marketing communication program" as a method of delivering a
consistent message (page 403). - CORRECT ANSWER - A program that integrates all the
communication elements to deliver a comprehensive, consistent message to all customers over
time, across all elements of their retail mix, and across all delivery channels.
definition and concept of "marginal analysis" - CORRECT ANSWER - Is based on the
economic principle that firms should increase communication 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 - CORRECT
ANSWER - reduces cost.
concept of the "racetrack layout" (page 475). - CORRECT ANSWER - also known as a
loop, is a store layout that provides a major aisle that loops around the store to guide customer
traffic around different departments within the store.
concept of the "promotional aisle or area" - CORRECT ANSWER - A space used to
display merchandise that is being promoted.
definition and concept of "planogram" - CORRECT ANSWER - a diagram that shows
how and where specific SKU's should be placed on retail shelves or displays to increase
customer purchases.
"tonnage merchandising - CORRECT ANSWER - A display technique in which large
quantities of merchandise are displayed together.
definition and concept of "atmospherics." - CORRECT ANSWER - refer to the design of
an environment by stimulation of the five senses.
challenges in providing consistent high-quality customer service (pages 500 and 501). -
CORRECT ANSWER - intangibility
concept of the "service gap - CORRECT ANSWER - When the customer's perception of
the service delivered by a retailer fails to meet the customer's expectations a service gap results.
concept of the "knowledge gap" - CORRECT ANSWER - A knowledge gap reflects the
difference between customers' expectations and the retailer's perception of those customer
expectations and perceptions.
concept of the "standards gap." - CORRECT ANSWER - Pertains to the difference
between the retailer's knowledge of customers' perceptions and expectations and the service
Exam Questions and CORRECT Answers
definition and concept of "merchandise management - CORRECT ANSWER - the 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 financial goals.
definition and concept of "category captain" - CORRECT ANSWER - The vendor who
works with the retailer to develop a better understanding of shopping behavior, create
assortments that satisfy consumer needs, and improve the profitability of the merchandise
category.
definition and concept of "national brands." - CORRECT ANSWER - also 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. - CORRECT ANSWER - imitates the
manufacturer's brand in appearance and packaging, generally are perceived as lower-quality and
are offered at lower prices.
advantages of private-label merchandise for a retailer - CORRECT ANSWER - Less
expensive to make
Offer better markup
Exclusive
Cannot be compared on price
May be targeted to niches
concept of "trade shows" (page 348). - CORRECT ANSWER - Provide 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 - CORRECT
ANSWER - Tariffs or duties: taxes collected by a government on imports
legal and ethical issue of "counterfeit merchandise" (review the "Counterfeit Merchandise"
section on pages 362 and 363). - CORRECT ANSWER - goods made and sold without the
permission of the owner or a trademark or copyright.
definition and concept of "brand equity" - CORRECT ANSWER - The value that a brand
image offers retailers is referred to as brand equity.
concept of "top-of-mind awareness." - CORRECT ANSWER - the highest level of
awareness, occurs when consumers mention a specific brand name first when they are asked
about the type of retailer, or merchandise category, 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). - CORRECT ANSWER -
Create 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" - CORRECT ANSWER - Consists of a set
associations that are usually organized around some meaningful themes.
concept of "integrated marketing communication program" as a method of delivering a
consistent message (page 403). - CORRECT ANSWER - A program that integrates all the
communication elements to deliver a comprehensive, consistent message to all customers over
time, across all elements of their retail mix, and across all delivery channels.
definition and concept of "marginal analysis" - CORRECT ANSWER - Is based on the
economic principle that firms should increase communication 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 - CORRECT
ANSWER - reduces cost.
concept of the "racetrack layout" (page 475). - CORRECT ANSWER - also known as a
loop, is a store layout that provides a major aisle that loops around the store to guide customer
traffic around different departments within the store.
concept of the "promotional aisle or area" - CORRECT ANSWER - A space used to
display merchandise that is being promoted.
definition and concept of "planogram" - CORRECT ANSWER - a diagram that shows
how and where specific SKU's should be placed on retail shelves or displays to increase
customer purchases.
"tonnage merchandising - CORRECT ANSWER - A display technique in which large
quantities of merchandise are displayed together.
definition and concept of "atmospherics." - CORRECT ANSWER - refer to the design of
an environment by stimulation of the five senses.
challenges in providing consistent high-quality customer service (pages 500 and 501). -
CORRECT ANSWER - intangibility
concept of the "service gap - CORRECT ANSWER - When the customer's perception of
the service delivered by a retailer fails to meet the customer's expectations a service gap results.
concept of the "knowledge gap" - CORRECT ANSWER - A knowledge gap reflects the
difference between customers' expectations and the retailer's perception of those customer
expectations and perceptions.
concept of the "standards gap." - CORRECT ANSWER - Pertains to the difference
between the retailer's knowledge of customers' perceptions and expectations and the service
