Flexible element of a retailer's strategy mix is. A merchandise assortment



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B) disguised, vertical retail audit

C) nondisguised, horizontal retail audit

D) nondisguised, vertical retail audit

Answer: B

Diff: 1 Page Ref: 583, 584

Skill: Applied/Comprehensive/Integrative


69) An evaluation of the extent to which salespeople engage in cross-selling can be best measured through a ________ retail audit.

A) companywide

B) horizontal

C) disguised

D) nondisguised

Answer: C

Diff: 1 Page Ref: 584

Skill: Applied/Comprehensive/Integrative

70) Which retail audit needs to be conducted when the store is open?

A) efficiency of point-of-sales system in handling markdowns

B) shortage/overage determination

C) assessment of the condition of building and grounds

D) analysis of employee records for completeness

Answer: A

Diff: 1 Page Ref: 584

Skill: Applied/Comprehensive/Integrative


71) To be successful, a retail plan needs to be conducted as an integrated and ongoing process.

Answer: TRUE

Diff: 1 Page Ref: 568

Skill: Terminology/Concept


72) A retail planning organization can be conducted on either a top-down or bottom-up basis.

Answer: TRUE

Diff: 1 Page Ref: 569

Skill: Terminology/Concept


73) Top-down plans involve a more participative management style than bottom-up plans.

Answer: FALSE

Diff: 2 Page Ref: 569

Skill: Terminology/Concept


74) A sales opportunity grid evaluates a product's profitability over several time periods.

Answer: TRUE

Diff: 2 Page Ref: 569

Skill: Terminology/Concept


75) Typically, the most productive strategy is the most expensive strategy.

Answer: FALSE

Diff: 1 Page Ref: 572

Skill: Terminology/Concept


76) It is important to use similar-sized retailers as part of benchmarking.

Answer: FALSE

Diff: 1 Page Ref: 573

Skill: Terminology/Concept


77) A retailer should develop its retail categories independent of well-known and respected secondary sources.

Answer: FALSE

Diff: 1 Page Ref: 574

Skill: Terminology/Concept


78) An accepted measure of customer satisfaction is the American Customer Satisfaction Index (ACSI).

Answer: TRUE

Diff: 1 Page Ref: 574

Skill: Terminology/Concept

79) Scenario analysis always involves controllable variables.

Answer: FALSE

Diff: 2 Page Ref: 580

Skill: Terminology/Concept


80) A good retail audit is conducted on a regular basis, comprehensive, systematic, and conducted in an independent manner.

Answer: TRUE

Diff: 2 Page Ref: 581

Skill: Terminology/Concept


81) Major advantages in the use of outside auditors are objectivity and lack of time pressures.

Answer: TRUE

Diff: 2 Page Ref: 582

Skill: Terminology/Concept


82) A retail audit should be implemented at least once in three years.

Answer: FALSE

Diff: 1 Page Ref: 582

Skill: Terminology/Concept


83) The overall performance of a retailer is evaluated in a vertical retail audit.

Answer: FALSE

Diff: 1 Page Ref: 583

Skill: Terminology/Concept


84) A horizontal audit is often referred to as a "retail strategy" audit.

Answer: TRUE

Diff: 1 Page Ref: 583

Skill: Terminology/Concept

85) Retail audits generally resemble experimental designs.

Answer: FALSE

Diff: 2 Page Ref: 583-584

Skill: Terminology/Concept


86) Retail planning need only be a one-time occurrence for a successful retailer.

Answer: FALSE

Diff: 1 Page Ref: 569

Skill: Applied/Comprehensive/Integrative


87) Bottom-up plans generally have greater acceptance of line managers due to their involvement in the retail planning process.

Answer: TRUE

Diff: 2 Page Ref: 569

Skill: Applied/Comprehensive/Integrative

88) A sales opportunity grid can be used in conjunction with direct product profitability analysis.

Answer: TRUE

Diff: 2 Page Ref: 569

Skill: Applied/Comprehensive/Integrative


89) A sales opportunity grid can be used in conjunction with category management.

Answer: TRUE

Diff: 2 Page Ref: 569

Skill: Applied/Comprehensive/Integrative


90) A retailer can improve its retail productivity by changing the merchandise mix, improving sales training, and utilizing new technologies.

Answer: TRUE

Diff: 2 Page Ref: 571-572

Skill: Applied/Comprehensive/Integrative


91) The strategic profit model is an example of a performance measure.

Answer: TRUE

Diff: 2 Page Ref: 573

Skill: Applied/Comprehensive/Integrative


92) A membership club should benchmark its customer service against comparable-sized clubs located in the same geographic region.

Answer: TRUE

Diff: 1 Page Ref: 573

Skill: Applied/Comprehensive/Integrative


93) The use of "best practices" in retailing is an example of benchmarking.

Answer: TRUE

Diff: 1 Page Ref: 573

Skill: Applied/Comprehensive/Integrative

94) Gap analysis compares variances between planned versus actual performance.

Answer: TRUE

Diff: 1 Page Ref: 578

Skill: Applied/Comprehensive/Integrative


95) The use of outside consultants in conducting a retail audit is most suitable for very small retail firms.

Answer: TRUE

Diff: 2 Page Ref: 582

Skill: Applied/Comprehensive/Integrative


96) In general, an outside retail auditor is most appropriate when the objectivity of company-based personnel is not of vital concern.

Answer: FALSE

Diff: 2 Page Ref: 582

Skill: Applied/Comprehensive/Integrative

97) A vertical audit typically precedes a horizontal audit.

Answer: FALSE

Diff: 1 Page Ref: 583

Skill: Applied/Comprehensive/Integrative


98) The use of a mystery shopper in assessing sales training involves a nondisguised audit while the store is open.

Answer: FALSE

Diff: 2 Page Ref: 584

Skill: Applied/Comprehensive/Integrative


99) A nondisguised audit is most appropriate in determining customer-service levels.

Answer: FALSE

Diff: 1 Page Ref: 584

Skill: Applied/Comprehensive/Integrative


100) A retail audit can cause poor employee morale.

Answer: TRUE

Diff: 2 Page Ref: 584-585

Skill: Applied/Comprehensive/Integrative


101) Explain why an effective retail strategy needs to be both integrated and ongoing.

Diff: 1 Page Ref: 569


102) Develop a sales opportunity grid for a new sterling silver polishing cloth to be sold in supermarkets.

Diff: 2 Page Ref: 569, 574


103) Discuss the relationship of the sales opportunity grid to slotting allowances and direct product profitability.

Diff: 1 Page Ref: 569, 574


104) Outline five performance measures used by supermarket retailers. Describe the importance of each measure.

Diff: 2 Page Ref: 573-574


105) Outline the principles of benchmarking for a retailer.

Diff: 1 Page Ref: 573


106) Discuss the relevance of incorporating the American Customer Satisfaction Index (ACSI) as part of a large retailer's overall planning process.

Diff: 1 Page Ref: 574-575


107) a. Outline three scenarios that can affect the performance of a home-improvement chain.

b. How can these scenarios be incorporated into a contingency plan?

Diff: 2 Page Ref: 580

108) Under what conditions should an audit be conducted by company specialists? ...company department managers? ...outside auditors?

Diff: 1 Page Ref: 582
109) Under what circumstances should a retail audit be performed in a disguised manner? ...in a nondisguised manner?

Diff: 1 Page Ref: 584


110) Develop a horizontal audit form for a new car dealer.

Diff: 2 Page Ref: 583


111) Develop a vertical pricing audit form for a Web-based computer software retailer.

Diff: 2 Page Ref: 583


112) What types of activities should be audited when the retailer is open?...when the retailer is closed?

Diff: 1 Page Ref: 584






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