Fashion Retail Exam 2 Quizzes – Flashcards
Unlock all answers in this set
Unlock answersquestion
Chico's is a national catalog and a specialty store retailer. Its target market is 35-to-55-year-old women. Sixty percent of its customers are college-educated with moderate to high family incomes. Chico's offers private brands, moderate to better-priced women's classic apparel, shoes, and accessories. Its stores are located within village locations and upscale regional malls. Synergies among the store, catalog and website operations provide a competitive advantage over other retailers. This is a description of Chico's...
answer
retail strategy
question
What is the design and implementation of a retail mix to create an image of the retailer in the customer's mind relative to its competitors?
answer
positioning
question
When given a choice between selling a national brand of makeup and a private-label brand, a mall-based specialty store retailer may choose to develop a private-label brand to...
answer
prevent customers from comparison shopping
question
A __________ growth opportunity is directed toward existing customers using the retailer's present retailing format.
answer
penetration
question
Market expansion opportunities help retailers grow by using...
answer
existing retail format in new market segmentation
question
A __________ growth opportunity is one in which a retailer introduces a new retail format directed toward a market segment that's not currently served by the retailer.
answer
diversification
question
The __________ is the set of steps a retailer goes through to develop a strategy and plan.
answer
strategic retail planning process
question
As Ashley drove down Fairfax Road, she noticed a group of adjacent stores. In the group, she saw a hair salon, a Papa John's pizza, a Wal-Mart, an optometrist, and a Save-A-Lot grocery store. All the stores had entrances into a parking lot, which was landscaped with trees and flowers. This is an example of a:
answer
neighborhood and community shopping center
question
Where would you most likely find a lifestyle center?
answer
in high income neighborhoods
question
Mixed-use developments (MXDs) are popular with retailers because they:
answer
bring additional shoppers to their stores
question
Ybor Square is a small shopping center located in the part of Tampa Bay, Florida, known as Ybor City. The shopping center building was a former cigar factory that prospered at the turn of the 20th century when Cuban and Italian immigrants settled in the Tampa Bay area. Now it houses small antique stores, bars, and restaurants that have grown to be central to Ybor City's night life. It is an example of a:
answer
theme/festival center
question
Kaitlyn was walking across campus to her chemistry lab when she noticed an area that had Victoria Secret Pink merchandise that was not there earlier in the week. This retail format would be an example of a __________.
answer
pop-up store
question
When Terri took her kids to Wal-Mart, she noticed a Subway restaurant near the entrance, which prompted her to stop for lunch. This restaurant is a great example of a:
answer
store within a store.
question
Why are airports such a profitable place to have a retail business?
answer
due to security changes, travelers are encouraged to arrive earlier, therefore have more time to shop
question
A city of 50,000 or more inhabitants, or an urbanized area of at least 50,000 inhabitants, with adjacent communities that have a high degree of economic and social integration with the core community is called a:
answer
metropolitan statistical area
question
Although retailers gain economies of scale from opening multiple locations in an area, they also suffer diminishing returns associated with locating too many additional stores in an area. This is called...
answer
sales cannibalization
question
Access to major highways, pedestrian traffic, and availability of mass transit are examples of which site characteristic?
answer
traffic flow and accessibility
question
Which of the following principles explains the success of a shopping center whose tenants include a Kohl's, a Wal-Mart, and a Dick's Sporting Goods?
answer
cumulative attraction
question
Fishing enthusiasts come from miles to shop at Shabby Bills, a shack that sells limited tackle and bait on the North Carolina Outer Banks. Bill attracts this crowd because of his expertise in the Outer Banks and local folklore. The Outer Banks would be considered Shabby Bills':
answer
trade area
question
In terms of trade areas, the owner of Bubba's Bar and Grille defines his __________ as the geographic area in which 70% of his customers live.
answer
primary trading area
question
The Village Green, a woman's clothing store, took a map of the city and the checks written by its customers during the last quarter. The store's owner then marked the address of each customer on the map with a map pin. By looking at where the pins clustered on the map, she could determine her trade area. She was engaged in:
answer
customer spotting
question
What compares the local average expenditure by product to the national average amount spent?
answer
the spending potential index
question
The objective of Huff's Gravity Model is to...
answer
determine the probability that a customer residing in a particular area will shop at a particular shopping center.
question
What is the difference between multiple regression analysis and the analog approach when estimating potential sales for a store site?
answer
Multiple regression analysis uses statistics rather than judgment to predict sales for a new store.
question
__________ is expressed as the retailer's sales or profit divided by the number of employees.
answer
employee productivity
question
Craig works for a retailer planning what merchandise will be in the assortments, setting prices, negotiating with vendors, and planning advertising and marketing for intimate apparel. He attends fashion trade shows and travels to market in New York City nearly every month. What position in the organizational structure of a retailing firm does Craig have?
answer
buyer
question
A __________ is responsible for allocating merchandise and tailoring the assortment of several categories for specific stores in a geographic area.
answer
merchandise planner
question
Does decentralization or centralization provide the opportunity to have the best people with the greatest expertise make decisions for the entire corporation?
answer
centralization
question
The most fundamental method of coordinating the work activities of retail employees is:
answer
through written policies that list specific expectations and ways that they are enforced.
question
As the manager of the home department at a large retail store, Brittney looks forward to a periodic __________, which she receives on the basis of her department's performance relative to its budgeted sales and profits.
answer
bonus
question
The day begins in each Wal-Mart store with the manager leading the famous Wal-Mart cheer. The cheer is a fun and energetic way to remind employees that the customer is always number one. For years, it has been the one way that the company has shared its enthusiasm and can be considered part of the:
answer
organization culture
question
__________ is a set of activities and techniques firms employ to efficiently and effectively manage the flow of merchandise from the vendors to the retailer's customers.
answer
supply chain management
question
What is a benefit of having an efficient supply chain?
answer
fewer stockouts
question
Macy's sells a variety of winter coats throughout the country focusing delivery in the northern regions first and ending the season rollouts in the south much like the way the cold weather migrates. This management of the winter products can best be described as:
answer
tailoring assortments
question
__________ is a retail business strategy that involves using the supply chain management process to introduce fashionable merchandise rapidly and respond to customer demand for the merchandise quickly.
answer
fast fashion
question
What is the computer-to-computer exchange of business documents in a standardized format from retailer to vendor and back?
answer
electronic data interchange (EDI)
question
A retailer whose requests for merchandise are generated at the store level on the basis of sales data captured by point-of-sale (POS) terminals is said to employ a(n):
answer
pull supply chain strategy
question
Retailers using a less sophisticated approach in which merchandise is allocated to stores on the basis of forecasted demand is said to employ a(n):
answer
push supply chain strategy
question
Which of the following is an advantage of using distribution centers (DCs) over direct store delivery?
answer
The DCs enable the retailer to carry less merchandise in the individual stores and lower inventory investments system wide.
question
What is the term that describes the process of moving returned merchandise to the retailer from the consumer to the distribution center and then to the vendor for the purpose of capturing value or proper disposal?
answer
reverse logistics
question
Because of the nature of vendor-managed inventory:
answer
the flow of consumer purchases determines replenishment.
question
CRM is based on the philosophy that retailers can increase their profitability by:
answer
building relationships with their better customers
question
__________ are the application of statistical techniques and models to find patterns in customer purchase data and make recommendations for improving the effectiveness of retailers.
answer
retail analytics
question
Since Kaitlin used __________ to analyze what her customers buy together during a single store visit, she knows to place facial tissues by the cold medicine and sandwich bread by the peanut butter.
answer
market basket analysis
question
Customer Lifetime Value (CLV) is:
answer
the expected contribution from customers to the retailer's profits over their entire relationship with the retailer.
question
What does the 80-20 Rule mean?
answer
80 percent of the sales or profits come from 20 percent of the customers.
question
The __________, often used by catalog retailers and direct marketers, is a scheme for identifying the retailer's best prospects on the basis of how recently they have made a purchase, how frequently they make purchases, and how much they have bought.
answer
RFM analysis
question
Ashley loves books and often shops at a nearby Books-A-Million. At the beginning of the year, she enrolled in a program where for $5 she would get a percentage off the purchases she made throughout the year. Which of the following best demonstrates this type of approach to customer retention?
answer
frequent shopper program
question
The Bird of Paradise flower is one of the world's most stunning tropical flowers standing tall and radiant with color. John owns a florist business and when he knows he's receiving a shipment of flowers from Hawaii, he texts and e-mails all of his customers who he knows enjoys the Bird of Paradise flower and informs them of the upcoming shipment. John's approach is an example of:
answer
1 to 1 retailing
question
What is customer alchemy?
answer
increasing the sales made to good customers
question
A way to achieve customer alchemy is through __________, which involves offering and selling more products and services to existing customers to increase the retailer's share of wallet with these customers.
answer
add on selling
