1.As a/an _______ type of store manager, Dina treats her employees as equals and asks for their input

when she is making a decision about whether to stay open late during the Memorial Day weekend, stock

extra inventory for Valentine’s Day, or any other decision that will directly affect her employees.





2.When Joe visited Crate and Barrel, he was surprised to see tea cups displayed up a wall almost to the

ceiling. What type of attention getting display is Crate and Barrel using for the tea cups?

A.Feature area

B.Window display


D.Point of purchase

3.Kohl’s implemented a new plastic recycling program in 2007. Their stores strip all plastic that is shipped

with the merchandise and return it through their distribution network for recycling. This plastic is recycled

into plastic pellets that will be used to make new items like plastic shipping totes, and garbage cans. This

program has been expanded to all of their stores, furthering Kohl’s commitment to waste stream reduction.

This is an example of

A.social responsibility.

B.efficient operations.

C.employee incentives.

D.maximizing profits.

4.Connor knew a popular celebrity was planning a shopping spree in his store that day and needed a

personal shopper to accompany her. Normally, Connor plays this role, but instead, he trusted a reliable

store associate to manage the visit. Connor would be available in the store should there be a problem, but

the exciting opportunity was to be handled by the associate. What type of leader was Connor?





5.Which of the following isnota step that managers take that will affect a store employee’s productivity?

A.Encourage employees’ communication with buyers

B.Improve employees’ skills through socialization and training

C.Evaluate and reward employees

D.Motivate employees to perform at higher levels

6.Clarissa’s department had the worst sales performance in months. She was confident that she had quality

merchandise and satisfied employees, so she should concentrate her efforts on

A.hiring mature employees.

B.group maintenance behaviors.

C.task performance behaviors.

D.autocratic behaviors.

7.Catherine was delighted with the new spring apparel at American Eagle. The sales associate greeted her

when she entered the store, showed her the new spring arrivals, then stayed with her throughout her

shopping experience bringing her additional items while Catherine was in the dressing room. This sales

service canbestbe described as

A.standardization services.

B.personalized service.

C.personalized retailing.

D.individualized retailing.

8._______, a form of discrimination, occurs when an unqualified man receives a promotion rather than a

qualified female applicant.

A.Minority impact

B.Disparate impact

C.Disparate treatment

D.Desperate measures

9.A greater awareness of businesses’ and society’s impact on the environment have caused retailers to find

ways to be

A.more green.

B.less expensive.

C.more profitable.


10._______ is the difference between the recorded value of inventory based on merchandise bought and

received and the value of the actual merchandise in stores and distribution centers divided by retail sales

during the period.

A.Profit margin

B.Loss margin

C.Inventory turnover


11.Glamour Shots uses makeup and clothes to try to make each of its customers look attractive. Then it

takes photos of these individuals. It makes money by selling these photos. Since each individual is different,

each makeover is different as is each camera shoot. Glamour Shots uses a/an _______ approach to

customer service.

A.individualized retailing



D.personalized retailing

12.You’re an employee in accessories of a department store. A customer complains about your lack of silk

scarves after she saw an advertisement in the newspaper. You are unable to provide a tangible restitution as

you aren’t management. Knowing the concept of procedural fairness, what else could you do to satisfy

your customer?

A.Offer a rain check.

B.Take their name and number and call them when the next shipment arrives.

C.Call other stores to see if it is in stock and direct the customer to the other store.

D.Make a note to the manager in front of the customer about the lack of merchandise.

13.Garrett can’t seem to find anyone to hire for a front-line person in his McDonald’s franchise. What

would be the most effective way to get out of his recruiting “slump”?

A.Advertise in the local paper for frontline personnel

B.Put a “help wanted” sign outside of the restaurant

C.Advertise on Monster.com

D.Offer his current staff $100 for the best candidate referral that turns into a hire

14.When Hector ordered the model fighter jet for $22 from a hobby catalog, he was horrified to find that

he was charged almost $19 for shipping charges. He swore never to buy anything from that catalog again.

Due to a _______ gap, the catalog lost a customer.





15.As Garry was waiting to pay for a bottle of aspirin he bought at a pharmacy, he added a copy of TV

Guide, a Snickers bar, and a pack of cheese crackers to his purchases. The area where Garry made his TV

Guide and Snickers selections is called a/an

A.end cap.

B.gondola display.

C.promotional area.

D.cash wrap.

16.Since a store design cannot achieve all objectives, managers need to made trade-offs among them.

Which of the following doesnotdescribe such trade-offs?

A.Specialty store retailers encourage the ease of finding merchandise rather than exploration.

B.The trade-off between the ease of finding merchandise, and providing an interesting shopping experience is determined by the

End of exam

customer’s shopping needs.

C.Retailers often make trade-offs between stimulating impulse purchases and making it easy to buy products.

D.Home Depot’s traditional design can efficiently store and display a lot of merchandise with long rows of floor-to-ceiling racks;

however, this design is not good for a pleasant shopping experience.

17.Which of the following is themajorcost controlled by a store manager?

A.Compensation and benefits for employees

B.Special events

C.Advertising on local radio

D.Vendor fees

18.The difference between the service aspect and the merchandise aspect of the retail offering is _______

caused by intangibility of service.





19.Which of the following doesnotdescribe aspects of grid layout?

A.It is well suited for grocery retailers.

B.It provides a visually exciting design.

C.It is well suited for shopping trips in which customers need to move throughout the entire store and quickly locate products

they want to buy.

D.It is cost efficient.

20.Why is it important for stores to be designed with flexibility in mind?

A.It’s less expensive for retailers to build several different types of flexible fixtures than to build one inflexible fixture.

B.Customers find it hard to locate merchandise if fixtures are rigid.

C.Stores with flexible designs can respond to market changes without large-scale renovations.

D.Department managers never know what to expect from the planners allocations and require the ability to display more

merchandise at a moment’s notice.