Deck 13: Store Layout and Design

Question 1

Since online customers browse frequently,which are the two aspects to be considered in keeping the content current?

A) Merchandise presentation and merchandise description
B) Store image and space productivity
C) Visual communications and store planning
D) Store design and merchandising
E) Microretailing and space productivity index

Answer 1

A

Question 2

The first decision the retailer must make in planning a store is:

A) deciding what graphics to use.
B) how to allocate the store's space.
C) deciding what type of fixtures to use.
D) deciding what type of lighting to use.
E) designing the logo.

Answer 2

B

Question 3

The goal of space allocation is to:

A) maximize customer access to high-profit items
B) evenly divide floor space between the five functional areas
C) make the largest possible amount of space available to hold merchandise and be shopable
D) allow for the rapid restocking of valuable shelf space in high-turnover merchandise categories
E) design a store which maximizes back room stock capacity

Answer 3

C

Question 4

Which element of the store's environment is concerned with the store's exterior design,ambience,and lighting.

A) Merchandising
B) Productivity
C) Store design
D) Store planning
E) Visual communications

Question 5

A store manager notes that the space productivity index for a particular product category is 1.35.Based on this information,the manager should consider:

A) reducing the amount of space allocated to this category, since it is underperforming.
B) lowering the price of the merchandise in this department in order to boost its sales per sq. ft., which will improve its index.
C) firing the buyer, because 1.35 is a very poor space productivity index number.
D) moving the product class to a more visible location within the store in hopes of improving the department's weak performance.
E) increasing the amount of space allocated to this category, since it has a very good space productivity index.

Question 6

Which element of the store's environment is concerned with the store's retail identity,graphics,and POS signage?

A) Merchandising
B) Productivity
C) Store design
D) Store planning
E) Visual communications

Question 7

The term "floor plan" in retailing refers to:

A) the process of deciding what price zones should be placed next to each other.
B) planning budgets, promotions, and specific activities for each department over a given period of time.
C) the activities associated with the planning of store lighting, designs, colors, and other elements of the store environment.
D) where merchandise and customer service departments are located, how customers circulate through the store, and how much space is dedicated to each department.
E) planning merchandise mixes, prices, and inventory for each department in a store.

Question 8

A simple but powerful truism in retailing is: "The more merchandise customers are exposed to that is presented in an orderly manner:

A) the higher their evaluation of the store."
B) the higher the store's average price per unit."
C) the more they tend to buy."
D) the lower the store's average price per unit."
E) the more crammed the store's appearance will be."

Question 9

_____ are pallets of merchandise set out on the floor in front of the main shelves.

A) Endcaps
B) Secondary shelves
C) Circulators
D) Spine racks
E) Stack-outs

Question 10

The first step when developing a floor plan is:

A) deciding what price should be used.
B) analyzing how the available store space should be allocated to various departments.
C) determining how customers circulate through the store after entering through every possible entrance.
D) determining where shoplifting is most likely to occur.
E) deciding where to put the nonselling areas.

Question 11

High shrinkage:

A) means the store is operating at a loss.
B) can be easily tracked.
C) means the store's turnover rate is too high.
D) detracts from space productivity.
E) is anything above .5 percent.

Question 12

According to the late retail consultant Robert Kahn,many retailers mistakenly believed that simply placing more products in a store increased sales per square foot.Kahn indicated that higher sales per square foot could be explained by understanding basic consumer behavior.Kahn's rationale can best be understood through the formula: sales per square foot equals:

A) the number of retail customers multiplied by the length of time they spend in the store.
B) the number of retail customers divided by the square foot of retail space.
C) the number of products carried multiplied by the number of retail customers.
D) the number of products carried multiplied by the shelf space available divided by the number of retail customers.
E) retail sales divided by square footage.

Question 13

_____ and _____ are the two primary objectives of the store environment.

A) Effective sales management; creating a distinctive ambience
B) Creative merchandise presentation; effective store traffic control
C) Maximizing impulse purchase opportunities; effective shelf space allocation
D) Creating the desired store image; increasing space productivity
E) Maintaining a pleasant selling environment; effective merchandise control

Question 14

In supermarket retailing,_____ percent of endcaps should be unadvertised "sale" items that will cause the customer to be alert when looking at an endcaps while traveling through the store.

A) 5
B) 10
C) 25
D) 40
E) 50

Question 15

The presentation of merchandise is a critical factor in the selling power of a store and its overall image.For bookstores,a face-out merchandise presentation of books as opposed to spine-out presentation:

A) is no longer used due to space constraints.
B) enhances store sales because face-out presentation allows the retailer to stock more titles.
C) creates a discount store atmosphere.
D) results in a consumer perception of cramming a huge selection of titles at low prices.
E) creates the image of a specialty book boutique that carries a limited selection of exclusive titles and is therefore a rather pricey place to shop.

Question 16

Which variable of the retailing mix has the greatest influence on a consumer's initial perception of a retailer?

A) The store's personnel
B) The store's price points
C) The store's promotional campaign
D) The store's merchandise
E) The store itself

Question 17

A space productivity index:

A) is typically done when designing a new store's space allocations.
B) reports on the ability of space allocations to maximize the quantities of merchandise carried.
C) analyzes the amount of shelf space allocated to particular individual brands across several departments.
D) measures the percentage of the store's total gross margin from a particular category to the category's percentage of total space utilized.
E) is based on industry or trade association data.

Question 18

_______ occurs when a chain store retailer operating over a wide geographic area,tailors its merchandise and services in each store to the needs of the immediate trading area.

A) Target marketing
B) Microretailing
C) Stack-outs
D) Shrinkage
E) Merchandise planning

Question 19

Which of the following refers to merchandise that cannot be sold because of theft,loss,and damage?

A) Miscellaneous
B) Unaccounted for
C) Shrinkage
D) Grossed
E) Lost

Question 20

All of the following are warning signs that a retailer has a space problem EXCEPT:

A) insufficient staging space for large shipments of advertised products.
B) open spaces on the selling floor, even if the product is on hand.
C) uncluttered and organized aisles, hallways and stockrooms.
D) sales lag expectations for specific locations where space or fixtures are a known issue.
E) off-site storage or multiple stockrooms required for a single commodity.

Question 21

The primary problem with the pegging method of merchandise presentation is that it:

A) can be labor intensive to display and maintain.
B) makes small merchandise appear disorderly and haphazard.
C) cannot be incorporated into a wall system.
D) gives a low-cost, low-quality image to a store.
E) cannot work with gondolas.

Question 22

The free-flow layout does NOT work well in large department stores or other stores offering a great variety of merchandise because:

A) it fails to provide cues as to where one department stops and another starts.
B) customers are encouraged to spend too much time browsing rather than moving efficiently through the store.
C) the arrangement of merchandise is difficult to blend for a consistent store environment.
D) they encourage customers to browse through the entire store so that they can see all of the merchandise and not concentrate on one area.
E) the average time spent in any particular department is reduced, thereby reducing average sales.

Question 23

The two basic types of merchandise presentation are:

A) visual merchandising and nonvisual merchandising.
B) product merchandising and service merchandising.
C) hardline merchandising and softline merchandising.
D) fixture merchandising and wall merchandising.
E) on-shelf merchandising and visual merchandising.

Question 24

The best example of the spine layout is found in:

A) automobile showrooms.
B) discount department stores.
C) drugstores.
D) medium-sized specialty stores.
E) discount furniture stores.

Question 25

Which type of store design is sometimes called a racetrack?

A) Grid
B) Circle
C) Free flow
D) Loop
E) Flexible

Question 26

The _____ usually works well in small stores where customers wish to browse through all of the merchandise.

A) standard
B) free-flow
C) grid
D) loop
E) spine

Question 27

Which two methods of merchandise presentation have the greatest potential to convey low-cost,low-price,and high-volume image?

A) Stacking and shelving
B) Pegging and folding
C) Dumping and shelving
D) Stacking and dumping
E) Hanging and pegging

Question 28

The four basic types of layout that retailers use today are:

A) spine, cluster, loop, and partition.
B) free flow, cluster, partition, and grid.
C) cluster, free flow, loop, and spine.
D) free flow, grid, loop, and spine.
E) cluster, loop, spine, and partition.

Question 29

A major benefit of the loop layout is that it:

A) provides a major customer aisle which begins at the entrance, loops through the store and then moves the customer to the "clearance" merchandise section of the store.
B) never lets the customer stray more than 10 feet from any of the merchandise in the store.
C) encourages customers to flow freely through all the fixtures, since there are usually no defined traffic patterns in the store.
D) lets the shopper get in and out of the store very quickly.
E) exposes shoppers to the greatest possible amount of merchandise.

Question 30

Which of the following is a good guideline to use when selecting fixtures for your store?

A) Large, metal, bulky fixtures will enhance sales while more delicate fixtures reduce sales potential.
B) When shopping for clothing, let the fixtures point out the sizes before they reveal the color of the items.
C) Design the store so that customers can view all the fixtures holding the merchandise by turning at a 90-degree angle from their normal path of travel.
D) Always use simple "earth tones."
E) Match the fixture to the merchandise, not the merchandise to the fixture.

Question 31

Which of the following is NOT an example of the "psychology of merchandise presentation"?

A) Displaying merchandise in vertical bands of color can increase sales.
B) Consumers always turn left when entering a store for the first time.
C) Shoppers view merchandise at 45-degree angles from their path of travel.
D) Merchandise displays evoke images of how trendy or value oriented a retailer is.
E) Displaying hair-care products on a high series of shelves in the waiting area that is lighted with fluorescent light fixtures.

Question 32

The _____ is considered a softline feature fixture,because it presents merchandise in a manner that features certain characteristics of the merchandise (such as color,shape or style).

A) four-way rack
B) gondola
C) round rack
D) straight rack
E) flat-base deck

Question 33

The _____ layout is essentially a variation of the free-flow,grid,and loop layouts,and combines the advantages of all three.

A) complex
B) spine
C) master flow
D) flexible
E) mixed

Question 34

In a _____ store layout,counters and fixtures are placed in long rows or "runs," usually at right angles,throughout the store.

A) standard
B) free-flow
C) grid
D) boutique
E) mini-store

Question 35

Most shoplifting takes place in:

A) fitting rooms, aisles crowded with extra merchandise, and behind high displays.
B) layaway and customer service areas.
C) back rooms, especially the loading dock.
D) office spaces.
E) restrooms.

Question 36

The chief advantage of a round rack is:

A) it allows garments to be presented face out.
B) it holds more merchandise than either the straight rack or the four-way rack.
C) it holds the bulk of merchandise without looking as heavy as a long straight rack.
D) it is less expensive than the gondola and twelve-hold rack.
E) it takes up less floor space than either the straight rack or the four-way rack.

Question 37

The most familiar example of the grid layout is a(n):

A) automobile showroom.
B) jewelry store.
C) drugstore.
D) apparel shop.
E) furniture store.

Question 38

_______ is the display of merchandise on counters,racks,shelves and fixtures throughout the store.

A) Hardline merchandising
B) Feature merchandising
C) Softline merchandising
D) On-shelf merchandising
E) Visual merchandising

Question 39

The "psychology of merchandise presentation" refers to the fact that:

A) different merchandising methods can strongly influence buying habits.
B) merchandise presentation teaches consumers how to shop effectively.
C) consumers in a store should be led around like mice through a maze.
D) social factors strongly influence shopping behavior.
E) shoppers can be classified according to psychological tests.

Question 40

The _____,which can hold a wide variety of merchandise by means of hardware hung from the vertical spine,is the workhorse fixture in hardlines departments.

A) table
B) round rack
C) gondola
D) basket
E) flat-base decks

Question 41

Keeping content current is an important element of effective website design for retailers.

Question 42

_____ signage consists of large signs that are usually placed fairly high,so they can be seen throughout the store.

A) Fixture
B) Directional
C) Point-of-sale
D) Price/info
E) Category

Question 43

In general,the largest in-store signage is usually:

A) logo signage at the rear of the store.
B) directional and departmental signage.
C) signage comparing the store's prices to competitors.
D) signage that points out the product's features.
E) point-of-sale signage.

Question 44

Merchandise presentation is a critical factor in determining both store image and productivity.

Question 45

_____ is the overall feeling or mood projected by a store through its aesthetic appeal to the human senses.

A) Feel
B) Ambience
C) Flavor
D) Sense
E) Decor

Question 46

_____ signage is usually smaller,since it is intended to be seen from a shorter distance and is located on or close to the fixture itself.

A) Fixture
B) Directional
C) Point-of-sale
D) Price/info
E) Category

Question 47

_____ signage is placed closer to the merchandise and is intended to give details about specific merchandise items.

A) Fixture
B) Directional
C) Point-of-sale
D) Price/info
E) Category

Question 48

The two primary objectives to consider when planning a new store are the image it projects and the conversion rate generated by its sales force.

Question 49

If the retail store can be compared to a book,then the storefront,or store exterior,is like the:

A) title.
B) prologue.
C) chapters.
D) ending.
E) book cover.

Question 50

Which of the following is NOT a characteristic of an effective visual merchandising display?

A) It is not typically associated with a shopable fixture.
B) It is usually located in a focal point or feature area of the store.
C) It is most widely used by discounters and other low-price retailers.
D) It makes use of props in addition to the merchandise.
E) It does not have to include merchandise.

Question 51

As a general rule,managers should use the 80-20 rule for endcaps,where 80 percent of items on the endcap are announced sale items,and 20 percent are unannounced sale items.

Question 52

The first decision store planners must consider is how to efficiently allocate the store's space.

Question 53

Which of the following is NOT part of a retailer's visual communications program?

A) Store name and logo
B) Background music
C) Institutional signage
D) Directional and category signage
E) Lifestyle graphics

Question 54

_____ signage describes the merchandising mission,customer-service policies,and other messages on behalf of the retail institution,such as "Lowest Price Guaranteed."

A) Mission signage
B) Store signage
C) Category signage
D) Institutional signage
E) Policy signage

Question 55

Setting and presentation are now critical factors in serving the customer.

Question 56

Which of the following statements about sensory marketing is true?

A) Effective store designs should appeal only to the senses of sight and sound.
B) Background music is no longer considered a valuable marketing tool to influence shopper behavior.
C) Retailers today are trying to use lighting as a key in-store marketing tool to put consumers in the "mood".
D) The tempo of music affects how long shoppers stay in a store.
E) The placement of ads in a store's background music is illegal in the United Sates.

Question 57

An effective store layout and design creates a comfortable environment that enhances the merchandise and entices shoppers to browse and buy.

Question 58

Visual communications in retailing have become especially important because:

A) retailers are making bigger investments in high-tech methods of communications.
B) customers are becoming increasingly sophisticated.
C) retailers have found it necessary to cut costs by reducing their sales staffs.
D) they provide better service than sales associates.
E) more and more people are functionally illiterate.

Question 59

Visual merchandising is:

A) the practice of making the most profitable merchandise the most visible.
B) the practice of making all the merchandise as visible as possible.
C) practiced by lower-end stores attempting to shake their "cheap" image.
D) the artistic display of merchandise and theatrical props to set the tone for the store.
E) intended to be highly shopable.

Question 60

The retailing practice of appealing to sight,sound,smell,and touch is called _____ marketing.

A) ambience
B) sensory assault
C) sensory maximization
D) total sensory
E) sensory decor

Question 61

The spine layout is heavily used by medium-sized specialty stores.

Question 62

Office and other functional space includes a break room for associates,a training room,offices for the store manager and assistant managers,a cash office,bathroom facilities for both customers and employees,and perhaps other areas.

Question 63

When determining space allocation for a new store,a retailer should consider industry standards,the retailer's previous experience with similar formats,and the space required to carry the number of items specified by the retailer's buyers.

Question 64

Shrinkage represents the loss of merchandise through theft,loss and damage.

Question 65

The floor plan is the fundamental structure around which every other element of the store environment takes shape.

Question 66

Successful retailers place merchandise randomly throughout the store.

Question 67

When retailers speak of "store planning," they are referring to decisions related to the location of new stores.

Question 68

As a rule,the more merchandise customers are exposed to,that is presented in an orderly manner,the less they tend to buy.

Question 69

The major benefit of the free flow layout is that it exposes shoppers to the greatest possible amount of merchandise.

Question 70

The grid layout is often referred to as the "loop and box."

Question 71

The retailer's basic objectives can be summarized by stating: "Get customers into the store,get them to buy what you have,and hope they will not return it."

Question 72

The space-productivity index is a decision-making formula,not just a tool to help management make decisions.

Question 73

Because it is important to always have the correct stock on hand,the amount of space being devoted to the back room has increased in recent years.

Question 74

Free-flow layouts are best used in stores less than 5,000 square feet.

Question 75

A planogram is a graphic schematic which shows the precise location of every SKU on a shelf or other merchandise display.

Question 76

A "floor plan" is a schematic that shows where the merchandise and customer service departments are located,how customers will circulate through the store,and how much space should be allocated to each department.

Question 77

Most shoppers cannot consciously identify the elements of a good store,but they know when these elements are missing.

Question 78

One of the most important considerations when planning a store's layout is visibility of the merchandise.

Question 79

To enhance sales productivity,retailers must incorporate planning,merchandise presentation,and design strategies which minimize shrinkage.

Question 80

The space productivity index compares the operating cost of a particular category to its space utilized.