Retail Marketing Exam 2 – Flashcards
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Which is not an advantage to choosing a free-standing store as your retail location?
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pedestrian traffic that might drop in because they are walking by
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What are the advantages gained from locating in a freestanding site?
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ample parking for customers
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What is the responsibility of shopping center management?
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maintain parking lots make sure parking lot is well lit maintain outdoor signage for the center creating special events to attract customers all of the above
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The anchor stores in a shopping mall are traditionally:
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department stores
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Why are part-time employees a challenge to human resource management?
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Part-time employees are usually less committed than regular employees to their jobs and their company.
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Craig works for a retailer procuring merchandise for a specific category, setting prices and markdowns, and managing inventory for intimate apparel. He attends fashion and trade shows, and spends a considerable amount of time negotiating with vendors on prices and quantities. What position in the organizational structure of a retailing firm does Craig have?
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buyer
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Candace works for a national department store chain tailoring the assortment and allocating women's shoes to specific stores. She has learned in recent years to follow weather patterns and watch for the popularity of boots within the different regions. What position does Candace have in the organizational structure?
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She is a planner.
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Large retail chains can coordinate their buying and selling activities by:
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assigning employees to coordinating roles
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Build-A-Bear Workshops is a unique specialty store that teaches its customers how to build a cuddly stuffed animal by moving through a series of stations located in the store. Each "bear" is unique. The core of the business is light-hearted and kid-oriented. Even the CEO calls herself Chief Executive Bear. The focus on fun, creativity and humor can be considered a part of the:
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organizational culture
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Kiran took a position as an assistant buyer in a regional department store. Delighted with the new life she has outside of college, she was thrilled to see the work environment filled with many young, progressive free-thinkers working together for a common goal. The overall working environment of youth, fast-paced and forward-moving lifestyle of this merchandising department can be considered part of the:
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organizational culture
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Why would retailers be considered the most important link in the supply chain?
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They can best gauge customers' wants and needs.
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What could a retailer do with information obtained in a data warehouse?
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create customer loyalty programs calculate the value of a customer or a prospective customer coordinate all aspects of the marketing campaign learn how to group product categories to increase purchases do all of the above
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Every time a customer makes a purchase at a Wal-Mart, data is transmitted to the buyers and the distribution center so the merchandise can be replenished with the next truck delivery. It can be said that Wal-Mart utilizes the _________________ strategy.
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pull supply chain
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What dictates the type of distribution center that will be used?
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merchandise
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A business philosophy and set of strategies, programs and systems that focuses on identifying and building loyalty with a retailer's most valued customer is called:
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customer relationship management
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Why is constructing a customer database more difficult for customers making transactions in the stores?
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Store purchases can be made with cash or third party credit cards.
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Which of the following best describes the type of data analysis that focuses on the composition of the basket of products purchased by a household during a single shopping occasion?
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market basket analysis
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In the customer pyramid, which of the following would be most comparable to the 20% of the 80-20 rule?
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platinum segment
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What is the process by which a retailer attempts to offer the right quantity of the right merchandise at the right time while meeting the company's financial goals?
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Merchandise management
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The _________ is the basic unit of analysis for making merchandise decisions.
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SKU
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While department stores generally manage merchandise at a category level, supermarkets organize their merchandise around:
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brands or vendors
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A retailer of children's clothes would like to compare the performance of children's underwear, a staple, to low margin/high turnover designer coats that it also stocks. To perform this comparison, ____________ should be used.
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gross margin return on inventory investment (GMROI)
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Retailers achieve lower gross margins from selling national brands because of:
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the costs incurred by the vendors of promoting the national brands
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When negotiating with a vendor, it is best to:
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have at least as many negotiators as the vendor
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Why did Wal-Mart require its suppliers to sign a code of basic labor and hire outside auditing firms to inspect supplier factories?
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Wal-Mart wanted to ensure supplier compliance of basic labor standards.
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What is the most significant characteristic of the Orlando Premium Outlet?
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Largest dollar per square foot basis
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Before going into an outlet mall, what did Chanel do with their merchandise that didn't sell?
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Burn it
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The Forum Shops located in Ceasars Palace is the one of the original themed hotels in Las Vegas.
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True
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Themed retailing was first introduced as "Themed Retailing" back in 1958 when referring to a store's personality.
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True
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Examples of Themed Retailing include:
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Build-A-Bear Forum Shops Rain Forest Café Toys-R-Us All of the above
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The Forum Shops at Caesars Palace produces some of the highest dollars per square foot compared to other retail locations.
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True
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Two types of Strip Shopping Centers are
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Traditional & Power Centers
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The mall of America ranks as the 3rd most popular tourist destination in the US behind Disney World & the Grand Cayon.
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False
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The reason consumers favor Lifestyle Centers over malls is:
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Overall atmosphere Convenience of parking Convenience of location relative to residence Feelings of safety & security All of the above
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Nordstrom opened in 1901 as a
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Shoe store
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At the Gainesville Nordstrom Distribution Center, 25% of their freight is Ready to Wear.
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True
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What age group does Build-A-Bear cater towards?
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Kids of all ages
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Build-A-Bear has recently been opening stores in other countries. For quality control reasons, how many franchisees do they allow per country?
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1
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How did property groups originally choose locations for Outlet malls?
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Pick two cities & put an outlet between them, preferably in areas where people would need to stop and rest while traveling
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Chelsea Property Group designs and manages
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Architecturally themed, upscale outlet shopping centers
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What is the core business for Walgreen's?
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Pharmacy
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The only other company who has similar steady growth like Walgreens is:
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Wal-Mart
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RFID stands for Radio Frequency Identification Device.
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True
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From a retail perspective, when is the holiday season?
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November- January
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What is the 2nd most watched program on TV?
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Macy's Thanksgiving Day Parade
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According to Carla Schollianos from Macy's, which of the following is true?
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Retail is for people who can think outside the box.
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According to Carla, what is the most rewarding aspect of working in retail?
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Being able to see the results of her work reflected in the days sales
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What is the biggest myth in retail?
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A career in retail involves standing behind a cashier counter
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What is Macy's Partners in Time program?
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A volunteer program for Macy's employees
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Joe Vella said that Macy's focuses on 5 main areas for community service. Which of the following is not one of the 5?
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Humane Society
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When is Cyber Monday?
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Monday after Thanksgiving
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The shopping cart was designed by Sylvan Goldman to make it easier to shop in his grocery store.
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True
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What affects the holiday season sales?
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Length of the season Economy/Consumer confidence Promotions and Discounts Inventory Levels All of the above
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National brands are also called _______________ brands
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manufacturer
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What can a successful private label do for a retailer?
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It can help develop store loyalty. A private label can increase store traffic. It can enhance store image. A private label can differentiate a retailer from its competitors. It can do all of the above.
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Sam's Club requires a tremendous amount of operating space; therefore, you are most likely to find them located ___________.
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at freestanding sites (Freestanding sites have cheaper rent that makes the extra space necessary affordable.)
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Who owns AND manages the Mall at Millenia?
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Forbes
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In order to stay relevant to the guest Dave & Buster's has evolved the look and feel of their buildings in recent history.
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True
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How fast will the sorter be when put in place at the Nordstrom distribution center?
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85 cartons per minute
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What are some of the challenges being faced by malls?
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Many aging malls have not been updated and are unappealing to shoppers. Malls have a high level of foot traffic have a high level of entertainment and place for dining, however, because many of the aging malls have not been updated, they are becoming unappealing to shoppers.
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The newest complex in Las Vegas that was opened the end of 2009, made of 6 buildings and designed to focus on living and shopping and not just gambling is
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City Center
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Themed retail was first introduced in 1958 when referring to a store's personality?
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True
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Where is the most expensive shopping districts?
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5th Avenue - New York
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The US shopping center industry statistics include:
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a) 1 in every 10 jobs in the US is in the shopping center industry b) Shopping centers generate 2.25 trillion in retail sales c) Consumers spent an average of $7528.00 per year at shopping centers d) A,B & C e) A and C only Answer is D
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What are the objectives of a pop-up?
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a) Branding b) XXXX c) Sell product d) A&B e) A&C Answer is E
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What is the largest mall in North America?
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West Edmonton Mall
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__________ are applications of statistical techniques and models to find patterns in customer purchases data and make recommendations for improving the effectiveness of retailers.
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Retail analytics Answer is A. Retail analytics uses information collected to target promotions and tailor assortments in its stores to preference of customer in the store's trading area.
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A store sells a variety of winter coats throughout the country focusing delivery in the northern tiers 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:
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C. tailoring assortments Answer is C. Inventory management through tailoring assortments allows retailers to be certain of having the right amount of inventory in the right place at the right time.
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In Paul Ferrante's presentation regarding JCPenney he discussed the 3 lessons learned;
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Don't mess with the customer, test more and having the right people in the right place
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Which of the following activities is NOT typically performed in the merchandise division?
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B. the hiring and firing of sales associates Answer is B. The merchandising division is tasked with centralized buying and inventory planning of products along with planning the assortments and negotiating with vendors. They are not involved with personnel issues of sales staff as this is a responsibility of the store management.
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A(n) _____________ is a contiguous geographic area that accounts for the majority of a store's sales and customers.
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B. trade area Answer is B. Trade areas are contiguous geographic area that accounts for the majority of a store's sales and customers.
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With regression analysis used in location analysis, predictor variables are selected. Which of the following predictor variables would be more useful for a retailer who is contemplating opening a day care center than for a retailer of used books?
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number of households with children not attending school Answer is A. The number of young children in its potential trade area would be a good predictor of its potential success.
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Who are the best tenants at the Mall at Millenia?
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a) Macy's b) LV c) Apple d) Cheesecake Factory e) All of the above Answer is E
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A _____ stores purchase data collected at the point of sale that is used to access data designed to support decision making in an organization.
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D. data warehouse Answer is D. This data can be analyzed at different levels; by company, by division, by store, by vendor, by category, by SKU, by year, by season, by month, etc.
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You won't see pop-ups in second-tier real estate, only in prime locations that generate maximum traffic.
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True
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Which segment of Dave & Buster's has the highest marginal profitability?
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Games
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In the past, retailers used mass media advertising and price promotions to all customers. Now, they are beginning to provide more value to their best customers by using targeted promotions to increase their ________.
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B. share of wallet Answer is B. This change in perspective is assumed to help retailers be more profitable.
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How large is the Nordstrom distribution center?
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180,000 sq. ft.
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Why would a small retailer NOT be interested in opening a mall kiosk?
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E. The rent per square foot is very expensive. Answer is E. Kiosks are expensive when comparing the cost per square footage, however, since they don't take up much space, they are considerably cheaper than a regular sized store.
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Who is the largest shopping center owner?
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Simon Properties Group
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Candace works for a national department store chain. She tailors the assortment, and allocates women's shoes to specific stores. She learned, in recent years, to follow weather patterns and watch for the popularity of boots within the different regions. What position does Candace have in the organizational structure?
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E. She is a planner. Answer is E. Planners are responsible for inventory planning and allocating of merchandise while the buyers are responsible for what products will be in the assortment.
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JC Penney has many Sephora cosmetic shops within its stores. This would be an example of a __________.
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C. store within a store Answer is C. Retailers sometimes lease space out within their store to other businesses; hence a store within a store concept exists.
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According to ICSC what is the fastest growing center type.
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Outlet Center
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Which of the following does NOT describe the ways to reduce the level of inventory in the supply chain and the number of stockouts in the stores?
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C. using reverse logistics Answer is C. Supply chain collaboration can add profit margin for both the vendor and the retailer by utilizing these four approaches to having the right product in the right place at the right time. Reverse logistics is a reaction to undesirable merchandise rather than an approach to lowering inventory levels.
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What does the 80-20 rule mean?
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D. 80% of the sales or profits come from 20% of the customers. Answer is D. Retailers group their customers based upon their CLV scores. The top would be 20% of the top customers with the remaining 80% being the rest of the customers.
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What shopping center in Las Vegas produces the highest $ per square feet?
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Forum Shops
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____________is the traditional down town business area in a city or town. It is also the hub for public transportation and there is a high level of pedestrian traffic.
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Central business district
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A design principle in moving a retailer from a service orientation to an experience orientation is
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a) Theming the experience b) Accenting positive cues c) Eliminating negative cues d) Engaging the 5 senses e) All of the above Answer is E
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A shopping center that would include Dillard's, Sam's Club, JCPenney, Borders and Best Buy while combining a mall, lifestyle center and power center characteristics in a unified layout can best be described as a(n):
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omnicenter Answer is A. Centers that combine enclosed malls, lifestyle centers and power centers in effort to create more pedestrian traffic, cross-shopping and longer shopping trips, are omnicenters.
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A retailer that is hard to get to, even if the customer can see it, has low _______________.
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B. accessibility The easier a store location is for consumers to access the better. Poor accessibility will deter customers from attempting to shop at the retailer. Answer is B
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Grocery stores are typically located in _____________.
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C. shopping strips Answer is C. Neighborhood and community shopping centers (also called strip shopping centers) are designed for day to day convenience shopping.
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Lexus works in the handbags department of Nordstrom. She takes 3% on all purchases. She has become one of the top salespeople in her store, and brings home a hefty paycheck. This 3% is best referred to as her:
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B. commission Answer is B. Commissions are based upon a percentage of the employee's sales.
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At the Mall of America, all of the children's specialty stores are on the ground floor and are near the restaurant Rainforest Café which also targets parents with children. This would be an example of the principle of ________________.
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C. cumulative attraction Answer is C. Places of business that target the same customers, even if the businesses compete have great drawing power and benefit all businesses.
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An example of CRM being used at a retailer is _______.
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frequent buyer cards Example is A. CRM programs focus on building loyalty with the retailer's most valued customers and to increase their share of wallet; frequent buyer cards are one strategy used to accomplish this objective.
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A Pop-Up shop is a temporary business that set up shop, sell their services and then ship out.
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True
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The most fundamental method of coordinating the work activities of retail employees is:
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D. through written policies that list specific expectations and ways that they are enforced
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Which of the following principles explains the success of a shopping center whose tenants include a Kohl's, a Walmart and Dick's Sporting Goods?
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C. Cumulative attraction Answer is C. Places of business that target the same customers, even if the businesses compete have great drawing power and benefit all businesses.
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What percentage of volume do the restaurants produce vs. the retail stores at The Mall At Millenia?
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10%
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How many units will the Nordstrom distribution center process in a year?
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14 - 15 million
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Which of the following can be used to determine how many people are in a trade area, and where they live?
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Customer spotting Answer is A. Customer spotting is a method of collecting data about consumers to determine where customers live in relation to the store location.
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____________have primarily a collection of big box retail stores, have few specialty stores, located near an enclosed shopping mall, offer low occupancy with modest levels of consumer convenience.
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Power Centers
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When the CEO of The Home Depot visits stores, he wears an orange apron like all store associates. As he pushes carts from the parking lot, he chats with the high school students typically assigned to the task. By doing this, he is able to learn about the store and make the young associates feel important. This is The Home Depot's way of:
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D. reducing status differences Answer is D. With less status difference, employees feel that they play an important role in the retailer's ability to achieve their goals.
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____________have an open-air configuration of specialty stores, entertainment and restaurants with design ambience and amenities such as fountains and street furniture.
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Lifestyle Centers
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Dave & Buster's competes directly with in-home gaming like Xbox and PlayStation
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False
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A retail entertainment experience occurs when a company intentionally uses services as the stage and goods as props, to engage individual customers in a way that creates a memorable event.
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True
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The anchor stores in a shopping mall are traditionally:
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department stores Answer is A. Department stores have been the anchors and drawing power of malls.
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A retailing chain in which local store managers make most of the retailing decisions instead of the corporate headquarters can be described as:
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E. Decentralized Answer is E. Decentralized retailers can react quicker to changes in consumerism and the market.
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Why are concerns about privacy heightened for customers who use the electronic channel while they shop?
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C. Because a large amount of information can be collected without the consumer's knowledge. Answer is C. Many consumers do not realize the extensive amount of information that can be collected without their knowledge online through using cookies.
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From the retailers view, ___________ reduces the retailer's supply chain costs and investment because the vendor assumes the costs and risks of shipping the product to the customer.
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Drop-shipping Answer is A. Drop-shipping also known as consumer direct fulfillment is a system in which retailers receive orders from customers and relay these orders to vendors and then the vendors ship the merchandise ordered directly to the customer.
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What are other location opportunities outside of a shopping center?
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a) Airports b) Pop-ups c) Resorts d) Store within a store e) All of the Above Answer is E.
