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BRM711S - Retail Management -1st Opp - June 2022 |
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nAmlBIA UnlVERSITY
OF SCIEnCE Ano TECHn OLOGY
FACULTYOF COMMERCE,HUMAN SCIENCESAND EDUCATION
DEPARTMENTOF MARKETINGAND LOGISTICS
QUALIFICATION:BACHELOROF BUSINESSMANAGEMENT
QUALIFICATIONCODE:07BBMA
LEVEL:7
COURSECODE: BRM711S
COURSENAME: RETAILMANAGEMENT
SESSION:JUNE 2022
DURATION: 3 HOURS
PAPER:THEORY
MARKS: 100
EXAMINER(S)
lsr OPPORTUNITYEXAMINATION QUESTIONPAPER
Mr. S. Tjitamunisa
Ms. F. Fotolela
MODERATOR: Mr. R. Ritter
INSTRUCTIONS
1. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly.
4. Detach the table on page 10 to answer the multiple choice and true or
false questions and attach it to your answer sheet.
THIS QUESTION PAPERCONSISTSOF 10 PAGES(Including this front page)
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SECTIONA
ANALYTICALQUESTIONS
50%
Question 1:
20
Discuss how a health and wellness clinic can successfully conduct its business activities by applying a
retail strategy.
Question 2:
15
What are the expected and augmented value chain elements for each of these retailers?
a.
FurnitureMart.
b.
Game.
c.
Local fruit-and-vegetable store.
Question 3:
15
Describe 5 pros and 5 cons of a firm such as Apple having its own retail facilities and E-commerce
Web site (www.apple.com) as well as selling through traditional retailers? (Hint: Write for marks)
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SECTIONB
MULTIPLECHOICEQUESTIONS
50
Answer all questions by ticking, or inserting an X in the table provide (page 9) after the set of
questions below
1. The channel of distribution consists of ___ _
A) the movement of goods and services from manufacturer to consumer-user
B) all of the businesses and people involved in the physical movement and transfer of
ownership of goods and services from producer to consumer
C) all independent intermediaries involved with the transfer of title of goods and
services
D) all middlemen involved with the physical movement of goods and services
2. A retailer collects an assortment of goods and services from various sources, buys in large
quantities, and sells in small amounts to final consumers. This is referred to as ___ _
A) one-stop shopping
B) the retail concept
C) retail transactional efficiency
D) the sorting process
3. Channel relations tend to be the smoothest in ____
A) exclusive
B) selective
C) intensive
D) wide
distribution.
4. Which of the following is not part of the total retail experience for a men's clothing retailer?
A) offering store credit
B) corporate form of ownership
C) the store's atmosphere
D) the brands carried
5. Just-in-time inventory management and electronic data interchange are examples of
A) a value chain
B) channel conflict
C) seamless logistics management
D) direct store delivery
6. Activities that enhance the shopping experience and give retailers a competitive advantage
are referred to as a(n) ___ _
A) customer loyalty program
B) potential customer service
C) expected customer service
D) augmented customer service
7. A potential problem relating to scanning that is unique to the self-checkout system is
A) consumer fraud
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B) scanner error
C) employee training of how to use the scanner
D) need for special shopping bags
8. Each of the steps in a retail strategy is ___ _
A) interdependent with other steps
B) independent of each other
C) organized on the basis of strategy and tactics
D) organized by company, geographic region, and store units
9. Decision making relating to a retailer's daily and short-term operations involve ___ _
A) tactics
B) target market determination
C) competitive advantage determination
D) strategies
10. An advantage of buying an existing business versus starting a new business is ___ _
A) no cost for goodwill
B) no time lag before opening
C) favorable lease terms
D) flexibility in developing and changing a retail strategy
11. Which objective is the most difficult to quantify?
A) sales
B) profit
C) satisfaction of publics
D) market share
12. A mass market strategy should be used by a retailer when ___ _
A) important differences exist among consumers in terms of their needs
B) consumer needs in terms of goods and services are homogeneous
C) consumer needs in terms of goods and services are so diverse that they cannot be
accurately characterized
D) many small niche markets exist
13. A dealer receives assistance on site location, start-up practices, accounting systems, and
management training in ___ _
A) a leased department
B) business format franchising
C) independent channel ownership
D) a chain
14. In most situations, leased departments have been used by existing retailers to ___ _
A) improve the store's overall image by emphasizing fashion
B) deepen the merchandise assortment in selected merchandise categories
C) broaden their offerings into product categories that are on the fringe of the store's
major product lines
D) generate rental income from "dead" space
15. A benefit to the use of a fully integrated system is ___ _
A) greater use of specialized expertise in production and marketing
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B) lower investment requirements
C) increased sales due to more intensive distribution
D) total control over its retail strategy
16. Which vertical marketing system allows a firm to utilize different wholesale and retail
channels of distribution?
A) dual marketing
B) independent vertical marketing system
C) partially integrated system
D) fully integrated vertical marketing system
17. The major difference between a voluntary wholesaler and a cooperative wholesaler is based
upon ___ _
A) functions performed by retailers
B) size in number of units
C) ownership
D) basis for payment (straight cash payment versus royalty)
18. An advantage of a leased department form of organization to a lessee is ___ _
A) management assistance
B) financial support provided by the leasor
C) high traffic potential
D) protection from FTCregulations
19. Retailers use private labeling to generate channel control because ___ _
A) greater channel communication is fostered
B) a large proportion of a manufacturer's output is sold to one retailer
C) retailers can more easily obtain bank financing
D) store loyalty accrues to the retailer from positive experiences with the brand
20. In scrambled merchandising, a retailer ___ _
A) adds goods and services that may be unrelated to each other and to the firm's
original business
B) trades up its customer services to attract a new target market
C) attempts to reduce its out-of-stock inventory
D) attempts to become a "category killer" retailer through its extensive assortment of
merchandise
21. The wheel of retailing suggests that ___ _
A) consumers desire customer service over price
B) established retailers should be cautious in changing their strategy from low end to
high end
C) retail consumers are store loyal
D) retailers that move up the wheel typically can keep their price-conscious customers
22. A merger benefits the affected retailers through ___ _
A) increased bargaining power
B) greater store name awareness
C) more efficient ordering systems
D) higher return on investment
23. The use of standardized store layouts, second-use locations, and buying refurbished
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equipment are characteristics of ___ _
A) adaptation strategies
B) a cost-containment approach
C) positioned retailing
D) mass merchandising
24. Which retail institution is not included in the traditional definition of a supermarket?
A) convenience store
B) food-based superstore
C) warehouse store
D) box (limited-line) store
25. A combination store combines ____
into one facility.
A) multiple leased departments
B) a supermarket and a general merchandise retail operation
C) a department store and a full-line discount house
D) a warehouse store and a specialty store
26. Which retail institution purchases brand-name merchandise on an opportunistic basis?
A) warehouse store
B) full-line discount store
C) flea market
D) off-price chain
27. Direct marketing is forecast to grow based on ___ _
A) greater product standardization and the prominence of well-known brands
B) the growth of private label brands
C) direct marketing clutter
D) reduced postal rates and paper stock costs
28. Conventional vending machines are generally not considered as a form of direct marketing
since ----
A) most transactions involve beverages, food items, and cigarettes
B) consumers do not complete transactions via mail, phone, fax, or computer
C) the transaction is automated
D) no credit or checks are involved as part of the transaction
29. Which of the following is not an advantage of using the Web by retailers?
A) A Web site generally costs less to develop and maintain than a store.
B) The potential marketplace on the Web is large and dispersed.
C) Web sites do not have to be maintained after they are developed.
D) People can visit Web sites at any time.
30. Which of the following is an example of dual marketing?
A) single-channel retailing
B) multi-channel retailing
C) nonstore retailing
D) electronic retailing
31. Merchandise cannot generally be examined by consumers in which retail formats?
A) vending machines and direct marketing
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B) direct selling and specialty stores
C) membership clubs and flea markets
D) retail catalog showrooms and membership clubs
32. The manner in which individual consumers and families (households) live and spend time
and money is their ___ _
A) social-class structure
B) reference group behavior
C) life-style
D) demographic statistic
33. Which is not a consumer demographic?
A) population mobility
B) social mobility
C) education level
D) place of residence
34. The family life cycle shows ___ _
A) the extent to which groups influence a person's thoughts and actions
B) the ranking of people within a culture
C) families which share a distinctive heritage
D) how a typical family evolves from bachelorhood to children to solitary retirement
35. A consumer's decision process is comprised of two parts: ____
A) purchase; postpurchase behavior
B) the process itself; the factors affecting the process
C) need recognition; stimuli
D) demographics; psychographics
and ___ _
36. Which of these is not a benefit of the use of a retail information system?
A) Opportunities can be foreseen.
B) The initial time and labor investment is low.
C) Crises can be avoided.
D) The elements of a retail strategy can be coordinated.
37. An application of data mining is ___ _
A) pilferage control
B) sales forecasting
C) micromarketing
D) mass marketing
38. The Universal Product Code (UPC)system allows a retailer to ___ _
A) develop a personnel performance system
B) evaluate store managers based on profitability
C) read price information based on the code
D) store and monitor product sales data on an item-by-item basis
39. Marketing research in retailing involves ___ _
A) primary data collection and analysis
B) secondary data collection and analysis
C) the collection and analysis of information relating to specific issues or problems
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facing a retailer
D) the gathering, storing, and retrieval of data in an orderly manner
40. The first step in choosing a store location is to ___ _
A) determine whether to locate as an isolated store, in an unplanned business district,
or in a planned shopping center
B) evaluate alternate geographic (trading areas) in terms of the characteristics of
residents and existing retailers
C) select the general isolated business district or planned shopping-center location
D) analyze alternate sites contained in the specified retail location type
41. Between 50 and 80 percent of a store's customers come from its ____
A) secondary
B) primary
C) fringe
D) tertiary
trading area.
42. A store which does not have a real trading area of its own is a ____
A) fringe
B) parasite
C) destination
D) convenience
store.
43. What type of retailer has a very large primary trading area?
A) impulse retailer
B) convenience retailer
C) destination retailer
D) parasite store
44. A department store uses a(n) ____
computer site selection model. This model contains
a series of equations linking variables such as traffic patterns, population size, average
income, and transportation adequacy to estimated sales.
A) regression
B) analog
C) gravity
D) historical analogy
45. A major advantage of an isolated store location is that ___ _
A) there are no group rules which must be abided by in operation
B) parking and security costs can be shared with other tenants
C) shoppers can be easily attracted and maintained at the location
D) advertising costs are generally low
46. A major difference between a central business district (CBD) and a regional shopping center
is the existence of ____
in the CBD.
A) a major concentration of office buildings
B) free parking
C) merchants associations
D) vertical malls
47. What statement about the isolated store is correct?
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A) Isolated stores typically have high rents.
B) Isolated stores have high trading-area overlap with adjacent shopping centers.
C) Isolated stores have no affinities.
D) Isolated stores are parasite stores.
48. The way in which a retailer is perceived by consumers and others is its ___ _
A) store perception
B) aesthetics
C) image
D) atmosphere
49. The least expensive display is a(n) ____
A) cut case
B) assortment
C) ensemble
D) rack
display.
50. Which form of promotion has media payment, a non personal presentation, out-of-store
mass media, and an identified sponsor?
A) sales promotion
B) advertising
C) public relations
D) personal selling
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Student no...................................................... .
/50 marks
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