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

Accepted Answer

Keeping merchandise presentation and merchandise description current is important because online customers browse frequently and may quickly lose interest if the content is outdated or inaccurate. By updating these two aspects regularly, retailers can keep customers engaged and interested in their products.

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.

Accepted Answer

Allocating space is the most important decision a retailer must make when planning a store, since it determines how the merchandise will be displayed and the traffic flow throughout the store. The other options (graphics, fixtures, lighting, logo) are important, but are more specific implementation details that follow after the space allocation decision is made.

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

Accepted Answer

The goal of space allocation is to make the largest possible amount of space available to hold merchandise and be shopable. This means that the store should allocate space in a way that maximizes the amount of merchandise that can be displayed and easily accessible to customers. This is important because it can directly impact sales and customer satisfaction. Maximizing customer access to high-profit items (A) and allowing for rapid restocking of high-turnover merchandise (D) are important considerations in space allocation, but they are not the primary goal. Evenly dividing floor space between functional areas (B) and maximizing back room stock capacity (E) are not necessarily the most important goals in space allocation.

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

Accepted Answer

Store design refers to the overall design and layout of the store, which includes the store's exterior design, ambience, and lighting. Store design is concerned with creating a welcoming and visually appealing environment that attracts customers and encourages them to stay in the store and make purchases.

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.

Accepted Answer

A space productivity index of 1.35 indicates that the product category is performing well in terms of sales per square foot. Therefore, allocating more space to this category could potentially increase overall sales, making option E the correct choice.

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

Accepted Answer

Visual communications are concerned with the visual elements of the store, including its retail identity, graphics, and point-of-sale signage. Merchandising refers to the arrangement and display of products, productivity relates to the store's efficiency, store design encompasses the overall layout and atmosphere of the store, and store planning involves the strategic planning of the store's physical space and resources. Therefore, E is the best choice.

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.

Accepted Answer

Floor plan in retailing refers to where the merchandise and customer service departments are located, how customers circulate through the store, and how much space is dedicated to each department. It is a blueprint of the store layout that affects the customer's shopping experience and influences their behavior.

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."

Accepted Answer

The more merchandise customers are exposed to that is presented in an orderly manner, the more they tend to buy. By presenting merchandise in an organized manner, customers are able to see and consider more options, which can lead to increased purchase behavior.

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

Accepted Answer

Stack-outs are pallets of merchandise set out on the floor in front of the main shelves. The other options listed are different types of display fixtures in a retail store.

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.

Accepted Answer

The first step when developing a floor plan is analyzing how the available store space should be allocated to various departments. This sets the foundation for the rest of the design process.

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.

Accepted Answer

High shrinkage means a high level of inventory loss due to factors such as theft, damage, or administrative errors. This detracts from space productivity as the store is not maximizing its use of inventory space.

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.

Accepted Answer

The answer of According to the late retail consultant Robert...

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

Accepted Answer

The two primary objectives of the store environment are creating the desired store image and increasing space productivity. The store image is important for creating a perception of the brand in the minds of customers and potential customers. Space productivity is important for maximizing the use of the available store space and for increasing sales.

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

Accepted Answer

Having 25% of endcaps being unadvertised "sale" items is a good balance between creating interest and not overwhelming customers with too many sales promotions. This percentage allows for enough variety and surprises for the customer while also keeping a focus on regularly priced items.

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.

Accepted Answer

A face-out presentation of books 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. This presentation emphasizes the quality of the books rather than the quantity, which enhances the store's overall image and pricing strategy.

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

Accepted Answer

The store itself, including its location, layout, design, and atmosphere, has the greatest influence on a consumer's initial perception of a retailer. This is because the store itself is the first thing that a consumer encounters when entering the retail environment and can impact their overall experience and impression of the store. While other variables such as merchandise, personnel, price, and promotion are also important, they may not have as immediate and significant of an impact on initial perception as 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.

Accepted Answer

A space productivity index measures the effectiveness of the store's space allocation by measuring the percentage of the store's total gross margin from a particular category to the category's percentage of total space utilized. It helps retailers determine if they are maximizing their space for the best profitability.

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

Accepted Answer

Microretailing is the practice of adapting products and services to fit the preferences of local markets. In the case of a chain store retailer operating over a wide geographic area, this would mean tailoring the merchandise and services in each store to the needs of the immediate trading area, which is referred to as microretailing. Target marketing refers to the practice of identifying and catering to specific consumer segments. Stack-outs refer to the display of merchandise in large quantities, while shrinkage refers to the loss of inventory due to theft, damage or errors. Merchandise planning is the process of determining which products should be offered, in what quantities, and at what prices.

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

Accepted Answer

Shrinkage refers to the loss of merchandise due to theft, loss, or damage.

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.

Accepted Answer

Uncluttered and organized aisles, hallways and stockrooms are not necessarily a warning sign of a space problem. In fact, it could indicate efficient use of space and good organizational skills. The other choices all suggest a potential space problem.

Quiz 13: Store Layout and Design

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

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

The goal of space allocation is to:

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

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:

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

The term "floor plan" in retailing refers to:

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

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

The first step when developing a floor plan is:

High shrinkage:

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

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.

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:

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

A space productivity index:

_______ 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.

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

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