Question 1

A disadvantage of using company department managers in conducting a retail audit involves the _____.
A)costs per day
B)time pressure
C)inability to conduct a vertical audit
D)company knowledge

Accepted Answer

The other options are not relevant disadvantages of using company department managers in conducting a retail audit. In fact, using managers who are familiar with the company's operations and policies can be beneficial. However, they may not be objective and may overlook certain issues. Using an independent third party can provide a more objective perspective.

Question 2

Which of the following is not an attribute studied as part of the SERVQUAL measure?
A)accuracy
B)tangibles
C)empathy
D)assurance

Accepted Answer

Accuracy is not one of the five attributes studied in the SERVQUAL measure. The five attributes studied are tangibles, reliability, responsiveness, assurance, and empathy.

Question 3

To be successful,strategic planning should be _____.
A)conducted by a planning group
B)viewed as an integrated and ongoing process
C)focused on short-term objectives
D)focused on technology

Accepted Answer

Strategic planning should be viewed as an integrated and ongoing process in order to continuously adapt to changes and remain effective. Conducting it solely through a planning group or focusing on short-term objectives or technology would limit its effectiveness and potential for success.

Question 4

A retailer with high inventory turnover is likely to have _____.
A)high gross margin return on investment
B)low operating costs
C)low employee turnover
D)high profits

Accepted Answer

High inventory turnover often indicates efficient inventory management, which can lead to a high gross margin return on investment as products are sold quickly and capital is not tied up in unsold inventory.

Question 5

Contingency planning is conducted in _____.
A)benchmarking
B)opportunity cost analysis
C)scenario analysis
D)gap analysis

Accepted Answer

Contingency planning involves developing alternative responses to unexpected or disruptive events. Scenario analysis is used to anticipate different scenarios and develop plans to address them. Benchmarking is a process of comparing an organization's performance to industry best practices. Opportunity cost analysis involves weighing the benefits and costs of one decision over another. Gap analysis involves identifying and addressing gaps between current performance and desired performance.

Question 6

The most well-known measurement tool of service quality is _____.
A)the PricewaterhouseCoopers index
B)the McKinsey service quality index
C)the American Customer Satisfaction Index
D)SERVQUAL

Accepted Answer

The most well-known measurement tool of service quality is SERVQUAL, which measures service quality by assessing customer perceptions of the performance of a service provider on five dimensions: reliability, assurance, tangibles, empathy, and responsiveness. The other options (A, B, and C) are not commonly used measurement tools for service quality.

Question 7

Which of the following is not a component of the global retail development index?
A)market attractiveness
B)market saturation
C)country risk
D)growth in Gross Domestic Product (GDP)

Accepted Answer

The global retail development index includes market attractiveness, market saturation, and country risk, but not growth in GDP.

Question 8

Sales revenue by goods/service category,gross margin return on investment,employee turnover,and financial ratios are examples of _____.
A)performance measures
B)specific activities
C)objectives
D)a retail audit

Accepted Answer

Sales revenue by goods/service category, gross margin return on investment, employee turnover, and financial ratios are all examples of performance measures. Performance measures are quantitative indicators used to evaluate an organization's performance in achieving its goals and objectives. These measures can help organizations identify areas where they are successful and areas where they may need to focus on improving.

Question 9

An ongoing benchmarking survey of customer satisfaction is _____.
A)the PricewaterhouseCoopers index
B)the McKinsey service quality index
C)the American Customer Satisfaction Index
D)SERVQUAL

Accepted Answer

The American Customer Satisfaction Index (ACSI) is a benchmarking survey that measures customer satisfaction across various industries and sectors. It is widely recognized as a standard measure of customer satisfaction in the United States. The other options - PricewaterhouseCoopers index, McKinsey service quality index, and SERVQUAL - are not specific benchmarking surveys for customer satisfaction.

Question 10

The retailer with the highest 2010-2011 index score based on the American Customer Satisfaction Index (ASCI)is _____.
A)Nordstrom
B)J.C Penney
C)Amazon.com
D)Costco

Accepted Answer

According to the given information, the retailer with the highest 2010-2011 index score based on ASCI is Amazon.com.

Question 11

An example of a tangible attribute as studied by SERVQUAL is _____.
A)a service technician's uniform
B)the providing of services when promised
C)the giving of attention to a customer's complaint by a service technician
D)keeping customers informed about when their service will be performed

Accepted Answer

A service technician's uniform is a tangible attribute that can be observed and measured by customers, and therefore can be included as a factor in the SERVQUAL model. The other options listed are related to service delivery and do not fall under the category of tangible attributes.

Question 12

The systematic examination and evaluation of a retailer's effort (or some aspect of it)is a _____.
A)consultant's report
B)situation analysis
C)primary data analysis
D)retail audit

Accepted Answer

A retail audit is a systematic examination and evaluation of a retailer's efforts, which includes assessing the retailer's financial and operational performance, inventory management, customer service, product assortment, and marketing strategies. The purpose of a retail audit is to identify areas of improvement and opportunities to increase sales and profitability.

Question 13

Outside auditors _____.
A)have a complete understanding of departmental operations
B)have prime responsibility to another job position
C)have limited independence
D)require time lags while gaining familiarity

Accepted Answer

Outside auditors require time lags while gaining familiarity with the operations and processes of the department they are auditing in order to provide an objective assessment. They also have a high level of independence to ensure impartiality in their findings.

Question 14

Internal personnel whose primary responsibility is the retail audit are _____.
A)consultants
B)company department managers
C)outside auditors
D)company audit specialists

Accepted Answer

Internal personnel whose primary responsibility is the retail audit are usually company audit specialists. They are specifically trained and hired by the company to perform internal audits and ensure compliance with company policies and procedures. Consultants and outside auditors are typically not considered internal personnel, and department managers may have other primary responsibilities.

Question 15

Small retailers would generally find that it is less costly to use _____ in conducting retail audits than _____.
A)company audit specialists;outside auditors
B)company audit specialists;company department managers
C)company audit specialists;independent consultants
D)outside auditors;company audit specialists

Accepted Answer

The answer of Small retailers would generally find that it...

Question 16

A firm compares its actual performance against its potential performance in _____.
A)benchmarking
B)scenario analysis
C)gap analysis
D)opportunity cost analysis

Accepted Answer

Gap analysis involves comparing an organization's actual performance against its potential performance to identify areas for improvement. Benchmarking involves comparing an organization's performance against that of other similar organizations. Scenario analysis involves assessing the potential impact of different future scenarios on an organization. Opportunity cost analysis involves weighing the benefits and drawbacks of different options to determine the best course of action.

Question 17

An advantage of using company specialists in conducting a retail audit is the _____.
A)objectivity
B)high independence
C)ongoing nature of the process
D)low cost

Accepted Answer

Company specialists conducting a retail audit can provide an ongoing and consistent evaluation process, as they are familiar with the company's operations and can continuously monitor and improve performance.

Question 18

A retailer gauges the effectiveness of a strategy through comparing its performance to a high performance retailer.This illustrates _____.
A)downsizing
B)competitor analysis
C)benchmarketing
D)the sales opportunity grid

Accepted Answer

This scenario describes benchmarketing, which involves comparing one's performance to a high-performing competitor as a way to identify areas for improvement and gauge overall effectiveness. A is incorrect as downsizing refers to reducing the size or scope of a company or organization. B is incorrect as competitor analysis involves analyzing the strengths and weaknesses of competitors in the market. D is incorrect as the sales opportunity grid involves analyzing products or services in relation to their market share and growth potential.

Question 19

The first step in undertaking a retail audit is _____.
A)developing audit form(s)
B)determining when and how often the audit is conducted
C)determining who does the audit
D)conducting the audit

Accepted Answer

The answer of The first step in undertaking a retail...

Question 20

The potential performance of new goods,services,and/or store outlets can be assessed using _____.
A)a sales opportunity grid
B)a market share/market growth grid
C)estimated markups
D)a product/market attractiveness grid

Accepted Answer

The answer of The potential performance of new goods,services,and/or store...

Quiz 20: Integrating and Controlling the Retail Strategy

A disadvantage of using company department managers in conducting a retail audit involves the _____.

Which of the following is not an attribute studied as part of the SERVQUAL measure?

To be successful,strategic planning should be _____.

A retailer with high inventory turnover is likely to have _____.

Contingency planning is conducted in _____.

The most well-known measurement tool of service quality is _____.

Which of the following is not a component of the global retail development index?

Sales revenue by goods/service category,gross margin return on investment,employee turnover,and financial ratios are examples of _____.

An ongoing benchmarking survey of customer satisfaction is _____.

The retailer with the highest 2010-2011 index score based on the American Customer Satisfaction Index (ASCI) is _____.

An example of a tangible attribute as studied by SERVQUAL is _____.

The systematic examination and evaluation of a retailer's effort (or some aspect of it) is a _____.

Outside auditors _____.

Internal personnel whose primary responsibility is the retail audit are _____.

Small retailers would generally find that it is less costly to use _ in conducting retail audits than _.

A firm compares its actual performance against its potential performance in _____.

An advantage of using company specialists in conducting a retail audit is the _____.

A retailer gauges the effectiveness of a strategy through comparing its performance to a high performance retailer.This illustrates _____.

The first step in undertaking a retail audit is _____.

The potential performance of new goods,services,and/or store outlets can be assessed using _____.