Question 1

An audit is doomed to failure if _____.

Accepted Answer

A) top management is not responsive to accepting the need for change 
B) the audit is conducted by company specialists 
C) the purpose of the audit is kept secret from middle managers 
D) the audit must be conducted when the store is closed 
A) top management is not responsive to accepting the need for change 
B) the audit is conducted by company specialists 
C) the purpose of the audit is kept secret from middle managers 
D) the audit must be conducted when the store is closed A

Question 2

The reliability and responsiveness measures of SERVQUAL deal with service outputs (how well and promptly the service was performed).

Accepted Answer

A) True 
 B)False  True

Question 3

A chain with 100 stores is currently opening between 7 and 10 stores per year.What performance measure most accurately reflects continuing sales productivity?

Accepted Answer

A) total sales 
B) sales increase on a year-to-year basis 
C) compound sales growth 
D) sales per square foot in stores open one year or more 
A) total sales 
B) sales increase on a year-to-year basis 
C) compound sales growth 
D) sales per square foot in stores open one year or more D

Question 4

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

Accepted Answer

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 
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

Question 5

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

Accepted Answer

A) downsizing 
B) competitor analysis 
C) benchmarketing 
D) the sales opportunity grid 
A) downsizing 
B) competitor analysis 
C) benchmarketing 
D) the sales opportunity grid

Question 6

Which statement concerning the sales opportunity grid is not correct?

Accepted Answer

A) The sales opportunity grid includes such factors as sales,gross profit,and net profit. 
B) The sales opportunity grid assumes that all products have the same markup. 
C) The sales opportunity grid uses data on costs from direct product profitability. 
D) The sales opportunity grid measures a product's performance over multiple time periods. 
A) The sales opportunity grid includes such factors as sales,gross profit,and net profit. 
B) The sales opportunity grid assumes that all products have the same markup. 
C) The sales opportunity grid uses data on costs from direct product profitability. 
D) The sales opportunity grid measures a product's performance over multiple time periods.

Question 7

Outside auditors _____.

Accepted Answer

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 
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

Question 8

An audit which focuses on a retailer's pricing strategy illustrates a _____ audit.

Accepted Answer

A) vertical 
B) disguised 
C) horizontal 
D) nondisguised 
A) vertical 
B) disguised 
C) horizontal 
D) nondisguised

Question 9

A retail audit should be implemented at least once every five years.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) costs per day 
B) time pressure 
C) inability to conduct a vertical audit 
D) company knowledge 
A) costs per day 
B) time pressure 
C) inability to conduct a vertical audit 
D) company knowledge

Question 11

A horizontal retail audit _____.

Accepted Answer

A) identifies the relative importance of each retailing mix element 
B) focuses on separate functional elements 
C) evaluates the environment facing a retailer: the economy,demographics,competition,and consumers 
D) is always disguised 
A) identifies the relative importance of each retailing mix element 
B) focuses on separate functional elements 
C) evaluates the environment facing a retailer: the economy,demographics,competition,and consumers 
D) is always disguised

Question 12

The use of a retail audit is appropriate for a Web-based retailer.

Accepted Answer

A) True 
 B)False

Question 13

The sales opportunity grid could best be used in conjunction with _____.

Accepted Answer

A) category management 
B) bottom-up retail plans 
C) short-run plans 
D) top-down retail plans 
A) category management 
B) bottom-up retail plans 
C) short-run plans 
D) top-down retail plans

Question 14

Few good industrywide performance measures exist for retailers to be able to make valid performance comparisons.

Accepted Answer

A) True 
 B)False

Question 15

A home improvement chain plans for various contingencies such as higher interest rates reducing home sales and the effect of electricity disruption due to major storms.This analysis is _____.

Accepted Answer

A) scenario analysis 
B) gap analysis 
C) benchmarking 
D) opportunity cost analysis 
A) scenario analysis 
B) gap analysis 
C) benchmarking 
D) opportunity cost analysis

Question 16

Sales opportunity grids provide estimates of store and brand sales,and gross and net profits for selected time periods.

Accepted Answer

A) True 
 B)False

Question 17

The appearance of service technicians and of the service equipment is referred to as _____ in SERVQUAL.

Accepted Answer

A) responsiveness 
B) assurance 
C) reliability 
D) tangibles 
A) responsiveness 
B) assurance 
C) reliability 
D) tangibles

Question 18

A firm can benchmark its current performance against its own prior performance,specific competitors,and high performance retailers.

Accepted Answer

A) True 
 B)False

Question 19

A retailer wants an audit to be as objective as possible.The retailer recognizes that there is significant rivalry and competition within the firm.The retailer should use a(n)_____ to conduct the audit.

Accepted Answer

A) outside auditor 
B) company department manager 
C) team auditor 
D) company specialist 
A) outside auditor 
B) company department manager 
C) team auditor 
D) company specialist

Question 20

A preliminary study of a retailer's operations revealed that employees might feel threatened by the retail audit process.What type of audit should be conducted?

Accepted Answer

A) disguised audit 
B) audit by company department managers 
C) audit by outside auditors 
D) nondisguised audit 
A) disguised audit 
B) audit by company department managers 
C) audit by outside auditors 
D) nondisguised audit

An audit is doomed to failure if _____.

The reliability and responsiveness measures of SERVQUAL deal with service outputs (how well and promptly the service was performed).

A chain with 100 stores is currently opening between 7 and 10 stores per year.What performance measure most accurately reflects continuing sales productivity?

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

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

Which statement concerning the sales opportunity grid is not correct?

Outside auditors _____.

An audit which focuses on a retailer's pricing strategy illustrates a _____ audit.

A retail audit should be implemented at least once every five years.

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

A horizontal retail audit _____.

The use of a retail audit is appropriate for a Web-based retailer.

The sales opportunity grid could best be used in conjunction with _____.

Few good industrywide performance measures exist for retailers to be able to make valid performance comparisons.

A home improvement chain plans for various contingencies such as higher interest rates reducing home sales and the effect of electricity disruption due to major storms.This analysis is _____.

Sales opportunity grids provide estimates of store and brand sales,and gross and net profits for selected time periods.

The appearance of service technicians and of the service equipment is referred to as _____ in SERVQUAL.

A firm can benchmark its current performance against its own prior performance,specific competitors,and high performance retailers.

A retailer wants an audit to be as objective as possible.The retailer recognizes that there is significant rivalry and competition within the firm.The retailer should use a(n)_____ to conduct the audit.

A preliminary study of a retailer's operations revealed that employees might feel threatened by the retail audit process.What type of audit should be conducted?

An Introduction to Retailing

Building and Sustaining Relationships in Retailing

Strategic Planning in Retailing

Retail Institutions by Ownership

Retail Institutions by Store-Based Strategy

Web, Nonstore-Based, and Other Forms of Nontraditional Retailing

Identifying and Understanding Consumers

Information Gathering and Processing in Retailing

Trading-Area Analysis

Site Selection

Retail Organization and Human Resource Management

Operations Management: Financial Dimensions

Operations Management: Operational Dimensions

Developing Merchandise Plans

Implementing Merchandise

Financial Merchandise Management

Pricing in Retailing

Establishing and Maintaining a Retail Image

Promotional Strategy

Filters

Exam 20: Integrating and Controlling the Retail Strategy

An audit is doomed to failure if _____.

The reliability and responsiveness measures of SERVQUAL deal with service outputs (how well and promptly the service was performed).

A chain with 100 stores is currently opening between 7 and 10 stores per year.What performance measure most accurately reflects continuing sales productivity?

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

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

Which statement concerning the sales opportunity grid is not correct?

Outside auditors _____.

An audit which focuses on a retailer's pricing strategy illustrates a _____ audit.

A retail audit should be implemented at least once every five years.

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

A horizontal retail audit _____.

The use of a retail audit is appropriate for a Web-based retailer.

The sales opportunity grid could best be used in conjunction with _____.

Few good industrywide performance measures exist for retailers to be able to make valid performance comparisons.

A home improvement chain plans for various contingencies such as higher interest rates reducing home sales and the effect of electricity disruption due to major storms.This analysis is _____.

Sales opportunity grids provide estimates of store and brand sales,and gross and net profits for selected time periods.

The appearance of service technicians and of the service equipment is referred to as _____ in SERVQUAL.

A firm can benchmark its current performance against its own prior performance,specific competitors,and high performance retailers.

A retailer wants an audit to be as objective as possible.The retailer recognizes that there is significant rivalry and competition within the firm.The retailer should use a(n)_____ to conduct the audit.

A preliminary study of a retailer's operations revealed that employees might feel threatened by the retail audit process.What type of audit should be conducted?

An Introduction to Retailing

Building and Sustaining Relationships in Retailing

Strategic Planning in Retailing

Retail Institutions by Ownership

Retail Institutions by Store-Based Strategy

Web, Nonstore-Based, and Other Forms of Nontraditional Retailing

Identifying and Understanding Consumers

Information Gathering and Processing in Retailing

Trading-Area Analysis

Site Selection

Retail Organization and Human Resource Management

Operations Management: Financial Dimensions

Operations Management: Operational Dimensions

Developing Merchandise Plans

Implementing Merchandise

Financial Merchandise Management

Pricing in Retailing

Establishing and Maintaining a Retail Image

Promotional Strategy

Filters

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