Competition Prep - Retail And Merchandising

10 Questions | By Shannonlazek | Last updated: Mar 21, 2022 | Total Attempts: 240

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10 Questions to prepare you for competition.

Questions and Answers

1.

1. The most likely reasons that a vertically integrated apparel company might offshore its manufacturing processes to businesses located in India, Taiwan, and China are to
- A.
  
  . lower its costs and increase its profit margins.
- B.
  
  Eliminate its transportation costs and improve product quality.
- C.
  
  Avoid its tax obligations and meet trade quotas
- D.
  
  . reduce product mix and accommodate demand.
2.

How do retailers benefit by using electronic data interchange systems?
- A.
  
  Decreases the need to check merchandise
- B.
  
  Limits electronic communication
- C.
  
  Reduces the order cycle time
- D.
  
  Eliminates the need for intermediaries
3.

In relation to channel management, which of the following actions should the manufacturer take to effectively introduce a new product to the marketplace:
- A.
  
  Use appropriate promotional techniques to inform channel members
- B.
  
  Establish ethics policies
- C.
  
  Improve communication with distributors or wholesalers
- D.
  
  Apply for a line of credit
4.

What course of action can a lender take if a debtor's account is past due?
- A.
  
  File a judicial lien
- B.
  
  Claim defamation
- C.
  
  Apply for bankruptcy
- D.
  
  Liquidate assets
5.

The purpose of asking the participants of a research study to maintain product diaries is to obtain marketing research about consumers'
- A.
  
  Financial skills
- B.
  
  Viewing preferences
- C.
  
  Essential needs
- D.
  
  Purchasing habits
6.

What are the characteristics of dissonance-reducing buying behavior?
- A.
  
  Expensive, infrequent purchase with high buyer involvement and few perceived differences
- B.
  
  Inexpensive, frequent purchase with low buyer involvement and few perceived differences
- C.
  
  Expensive, infrequent purchase with high buyer involvement and strong brand recognition
- D.
  
  Inexpensive, frequent purchase with low buyer involvement and strong brand recognition
7.

When a situation analysis reveals that a competitor's market share has steadily increased over the past year, the Franklin Electronics Store has identified an
- A.
  
  Internal change
- B.
  
  Internal weakness
- C.
  
  External threat.
- D.
  
  External strength.
8.

An effective way for a retailer to reduce the risk of shoplifting for small, expensive items is to place them
- A.
  
  In storage vaults
- B.
  
  On gondolas in the back of the store.
- C.
  
  In locked display cases.
- D.
  
  On wire shelves near the store's entrance
9.

Calculate the total owed for the following sales transaction that has a sales-tax rate of 7.25%: 3 picture frames for $22.59 each; 8 boxes of light bulbs for $8.50 box; 4 gallons of paint for $38.79 per gallon; 2 paint brushes for $9.35 each; and 1 light fixture for $167.49.
- A.
  
  $511.72
- B.
  
  $527.12
- C.
  
  $515.27
- D.
  
  $521.71
10.

A business might reduce a product's price during the growth phase of the product's life cycle because
- A.
  
  The product tends to attract early adopters during this phase of the life cycle.
- B.
  
  . the business wants to recover its research and development costs.
- C.
  
  It can lower advertising costs since the product has a loyal customer base.
- D.
  
  Competitors have introduced similar products to the marketplace.