UT Martin

Marketing 310:  Retailing

Instructor:  T. C. Johnston

Retail Management Chapter 2 Practice questions

1.         Which of the following is not a major dimension of retail strategy?

A.        Image.

B.         Location.

C.        Merchandise.

D.        Service.

E.         Communications.

2.         Drawing power is

A.        The ability of a store to pull customers away from the competition.

B.         The ability to increase a retailer's market share in an area.

C.        The ability to bring new and different customers into the store.

D.        The ability of a store to attract "cutting edge" consumers.

E.         The ability of a store to encourage customers to travel further to shop there.

3.         The number of different types or classes of products that retailer carries is called

A.        Assortment.

B.         Variety.

C.        SIC codes.

D.        Line tolerance.

E.         Collection.

4.         Assortment refers to

A.        The number of different types or classes of products that a retailer carries.

B.         How many different styles and brands a retailer carries in each product line.

C.        How the products are arranged on the store floor.

D.        How many times a year the retailer changes inventory styles.

E.         None of the above.

5.         Price/Cosco and Kmart are retailers who have

A.        Low service, low price.

B.         Low service, high price.

C.        High service, high price.

D.        High service, low price.

6.         Which of the following is not an advantage to retail planning?

A.        Planning helps the manager deal with the future more effectively.

B.         Planning helps to unify and coordinate the activities of employees.

C.        Planning minimizes costs and helps a manager solve problems creatively.

D.        Planning enables a manager to evaluate and measure progress and performance.

E.         All of the above are advantages to planning.

7.         Which type of analysis is typically done during the first step of the planning process?

A.        Gap analysis.

B.         Objective analysis.

C.        SWOT analysis.

D.        A and C.

E.         A and B.

8.         Gap analysis is used to

A.        Identify where there is a gap between what customers want and what noncustomers want.

B.         Identify where there is a gap between what you offer and what your competition offers.

C.        Identify where there is a gap between customer desires and retail offerings

D.        Identify where there is a gap between the lowest and highest price the customer will pay for a product.

9.         The mission statement answers which of the following questions?

A.        Where will our resources be used?

B.         How will we compete in the marketplace?

C.        What business are we in?

D.        How do we compare with the competition?

E.         Who are our customers?

10.       All of the features and characteristics of store, product, service, and people which combine to contribute to the ability to satisfy stated or implied wants of the customer is the definition of

A.        Quality.

B.         Marketing.

C.        Value.

D.        Price.

E.         TQM.